Conditions of debt-to-equity swap

Legal analysis: 1. Commercial debt-to-equity swap and policy debt-to-equity swap: Debt is the property legal relationship between specific people who request specific behaviors. The contents of debt are creditor's rights and debts. Creditor's right is the right to demand a specific behavior of a specific person and obtain that specific behavior. Therefore, once the relationship between creditor's rights and debt is established, the debtor should perform the debt according to the agreement or the provisions of the law, that is, if the payment is made according to the original purpose of the debt, the creditor has the right to collect the payment. Such as accepting the paid price or buying or selling the subject matter. At the expiration of the debt performance period, the creditor has the right to demand payment from the debtor to realize his creditor's rights. If the debtor fails to pay, the creditor may request the people's court to force the debtor to perform its obligations or compensate for the losses according to law, so as to ensure the realization of the creditor's rights. Equity is the right enjoyed by the shareholders of an enterprise with their contribution to the enterprise.

Legal basis: Article 166 of the Company Law of People's Republic of China (PRC), when distributing the after-tax profits of the current year, the company shall withdraw 10% of the profits and include it in the company's statutory reserve fund. If the accumulated amount of the statutory common reserve fund of the company is more than 50% of the registered capital of the company, it may not be withdrawn. If the statutory reserve fund of the company is insufficient to make up for the losses of the previous year, the profits of the current year shall be used to make up for the losses before the statutory reserve fund is withdrawn in accordance with the provisions of the preceding paragraph. After the company withdraws the statutory reserve fund from the after-tax profits, it may also withdraw the reserve fund from the after-tax profits upon the resolution of the shareholders' meeting or general meeting. After-tax profits of the company after making up losses and drawing provident fund shall be distributed by the limited liability company in accordance with the provisions of Article 34 of this Law; A joint stock limited company shall distribute shares according to the proportion of shares held by shareholders, except that the articles of association of a joint stock limited company stipulate that shares shall not be distributed according to the proportion of shares held. If the shareholders' meeting, shareholders' general meeting or the board of directors violates the provisions of the preceding paragraph and distributes profits to shareholders before the company makes up losses and withdraws the statutory reserve fund, the shareholders must return the profits distributed in violation of the provisions to the company. The company's shares held by the company shall not be distributed.