From Shell Preservation to Value Reconstruction:Based Analysis of Bankruptcy Reorganization in Delisted Private Firms

Abstract

With the rapid development of China’s capital market, a large number of private enterprises have achieved listing and promoted national economic growth. However, under the background of economic transformation and industrial structure adjustment, many listed companies have fallen into operational difficulties due to internal governance problems and market changes, and eventually face delisting. In order to protect investors’ rights and rescue valuable delisted enterprises, China promulgated the Enterprise Bankruptcy Law of the People’s Republic of China in 2007, introducing the bankruptcy reorganization system. At present, only three enterprises have successfully re listed after delisting and reorganization, indicating that the bankruptcy reorganization system of delisted companies is still imperfect, with low application frequency and insufficient academic research. As a large private listed enterprise engaged in cable materials, Jiangsu Dewei New Materials Co., Ltd. has largescale assets, numerous creditors and stakeholders, and has typical research value. This paper takes Dewei New Materials as a case, adopts literature analysis, case analysis and a combination of qualitative and quantitative methods, systematically combs the bankruptcy background, reorganization motivation, model selection, implementation process and effect of the company, and reveals how highquality enterprises can achieve rebirth through the bankruptcy reorganization system. The study finds that Dewei New Materials has got out of the financial crisis and achieved legal rebirth by introducing social capital as strategic investors, implementing share consolidation, debt restructuring and other measures. This case provides important reference for the bankruptcy reorganization practice of China’s delisted private enterprises.