Core Viewpoint - The financial asset management company, China Cinda Chongqing Branch, plays a unique role in resolving the "circular debt" issue faced by enterprises, effectively collaborating with local government to address long-standing debt problems [1][2]. Group 1: Debt Resolution Strategy - China Cinda Chongqing Branch does not focus solely on restructuring individual debts but instead analyzes the entire debt chain to design a comprehensive debt resolution plan [2]. - The plan includes re-signing legal agreements to clarify the debt relationship between the entities involved, utilizing specialized debt restructuring tools for partial debt offset, and creating a combination of "cash payment + market-oriented debt-to-equity swap" to facilitate the repayment scheme [2]. - This comprehensive approach addresses the fundamental issue of insufficient willingness to perform by the debtors and lays the groundwork for the subsequent restructuring of the debts owed by local state-owned enterprise C to entity B [2]. Group 2: Financial Impact and Performance Improvement - Following the implementation of the comprehensive debt resolution plan, China Cinda Chongqing Branch acquired and restructured the overdue debt of 300 million yuan held by local state-owned enterprise C, reducing the overall interest rate from 9% to 7% and extending the repayment period to 36 months [2]. - As a result of resolving historical debt issues, entity B optimized its capital structure, improved its credit status, and reduced other payables by over 2 billion yuan, leading to a projected 16% year-on-year increase in revenue for 2024 [2]. - The company reported a profit increase of over 300% year-on-year due to one-time gains from debt restructuring, successfully turning losses into profits and further decreasing overall financing costs [2]. Group 3: Collaborative Efforts and Efficiency - The debt restructuring process involved multiple stakeholders, with China Cinda Chongqing Branch coordinating with local government and enterprises to enhance work efficiency [3]. - The innovative use of agreements for restructuring not only clarified the debt relationships but also revitalized and preserved the value of state-owned assets, providing strong support for the development of advantageous local industries [3]. - By employing a systematic approach to large and small debt restructuring, the company effectively resolved the "debt deadlock" and historical issues, while ensuring compliance with regulatory processes for asset transfer and restructuring [3].
携手地方政府 共解“连环欠”难题