Foreign Enterprises Welcomed The "Debt To Equity Swap" &Nbsp; Two Foreign Businessmen First Eat Crabs.

Recently, foreign businessman Alex of Burlington Textile Co., Ltd. was excited to get the first foreign investment in debt to equity swap. enterprise Business license, approval certificate and registration certificate of foreign debts.

"Because of the development of the company, the head office has made the decision to increase foreign capital, which can be regarded as a new attempt." enterprise The original registered capital was US $14 million, and the shareholder International Textile Group (Barbados) Limited increased its foreign debt to a registered capital of US $3 million 100 thousand, making the scale of the foreign-funded enterprise expanded again.

The Ministry of Commerce and industry recently issued a new policy of debt equity swap for foreign invested enterprises, and two foreign invested enterprises became the first beneficiaries of the new deal. In the future, the creditors of foreign invested enterprises within the scope of the province are foreign shareholders and debtors who are invested companies. Now they can apply for increasing the registered capital or changing the way of capital contribution by way of debt to equity swap.

With the registered capital of US $35 million, the company's foreign debt increased to US $3 million 60 thousand, and the International Textile Group (Barbados) Limited increased foreign capital by US $2 million 940 thousand, and the registered capital increased to US $41 million.

It is understood that at present, there are 21629 foreign-invested enterprises in the province, with a total investment of US $183 billion 230 million and a registered capital of US $106 billion 940 million. Foreign invested enterprises have become an important part of the market economy.

Prior to this, foreign creditors' claims can only exist in the form of liabilities of the invested companies, in addition to requiring enterprises to act in accordance with the agreement. Perform There is no other way out of debt to achieve creditor's rights. On the other hand, the investment company has the desire to restructure its assets through capital raising and stock expansion but can not find enough investors. As a new form of non monetary contribution, creditor's rights can reduce the investment cost of investors, further expand the investment and financing environment, and improve the assets and liabilities structure of enterprises.

Prior to that, the Ministry of Commerce and Industry issued the Interim Measures for the registration and management of creditor's rights in domestic enterprises. So far, the province has registered 50 domestic funded enterprises' debt and the amount of investment is 4 billion 200 million yuan.