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Millions Of Guangdong Enterprises "Creditors" Become Shareholders

2012/1/4 9:31:00 63

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In view of the current financial difficulties of some enterprises, especially small and medium-sized enterprises, the State Administration for Industry and Commerce

Administration

The General Administration recently issued the "administrative measures for the registration of creditor's rights to equity swap" formally implemented in January 1st this year (hereinafter referred to as the "measures").

Recently,

Guangdong

The head of the Provincial Bureau of industry and Commerce said in an interview with reporters that as of the end of 11 2011, 1 million 87 thousand and 900 private enterprises in Guangdong had registered capital of 2 trillion and 557 billion 323 million yuan.

In November, 18 thousand new private enterprises were registered, an increase of 10.71% over the same period last year.

"The measures" effectively solved the difficulties in the operation of small and medium-sized enterprises, and enabled small and micro enterprises to benefit from it.

Debt contribution to solve the difficulties of small and micro enterprises

Provincial Industry and Commerce Bureau responsible person said that the implementation of debt to equity swap, first of all, is conducive to encouraging the expansion of investment and promoting more property rights into capital. The two is to increase the creditor's rights and interests to achieve the creditor's rights and interests, to revitalize the creditor's stock assets; three, it is conducive to improving the capital structure of the invested company, promoting its optimization of resource allocation and improving the solvency of other creditors; four, it is conducive to stabilizing the economic environment, helping difficult enterprises to reduce burdens and even regaining new life.

Influenced by the international financial crisis, some domestic enterprises, especially small and medium-sized enterprises, have been faced with financial difficulties. Many enterprises have put forward the urgent demand for capital contributions.

The introduction of the "measures" will play an active role in coping with the international financial crisis, broadening the financing channels, optimizing the assets structure and stabilizing the economic environment.

"The implementation of debt to equity swap is to support the development and expansion of enterprises with prospects for development, healthy financial conditions, good credit and in line with the direction of national industrial development, help to solve their capital needs in the development process, provide a new financing channel for enterprises, and also provide a new investment channel for creditors, thus enabling enterprises and creditors to achieve a win-win situation on the basis of sound development of enterprises."

The responsible person said.

"In particular, the involvement of stakeholders such as small and medium-sized enterprises and creditors can change the business.

Investment

The status quo of the main body is single, and the diversification of investors and management can be realized to attract more social capital to enter, thereby improving the corporate governance structure and achieving the development of small and medium-sized enterprises.

Peng Biyu, vice president of the school of economics and management of South China Normal University, believes that debt to equity swap can reduce the financing cost of enterprises and improve the governance structure of small and medium-sized enterprises, which is of positive significance for the further establishment of a modern enterprise system in the future.

Three kinds of claims can be converted into shares of the company.

It is reported that this is the first administrative rule to regulate the registration of commercial creditor's rights in China.

At present, our country coexist policy related debt to equity swap and commercial debt to equity swap.

Policy oriented debt to equity swap has issued a series of regulations, and there are no obstacles in actual operation.

Commercial debt to equity swap involves the issue of non monetary contribution of companies. Although the company law and the company registration management act have recognized the legality of the mode of debt contribution, they are only recognized in principle and lack of operational provisions.

"The introduction of the" measures "provides a system basis for commercial debt to equity swap.

Provincial Industry and Commerce Bureau official said, "the measures" clearly defined the concept of commercial debt to equity swap, and stipulated that the creditor's direct debt to the company could be pferred to the company's equity in three situations. First, the debt generated by the creditor between the company and the company was converted into the company's share rights. The premise is that the creditor has fulfilled the contractual obligations corresponding to the creditor's rights, and does not violate the prohibition provisions of the laws, administrative regulations, decisions of the State Council or the articles of association. Two, the creditor's rights which are confirmed by the people's court's effective judgment are pferred to the company's equity. Three, the company's bankruptcy reorganization or the period of reconciliation is included in the company's shareholding which is approved by the people's court for approval of the reorganization plan or the conciliation agreement approved by the court.

"It is important to note that there are more than two creditors in a creditor's right to be converted into equity, and the creditor shall have split the creditor's right. The sum of the amount of the amount of the capital contribution pferred to the stock right and other non monetary assets shall not be higher than 70% of the registered capital of the company."

Provincial Industry and Commerce Bureau responsible person.