Is bankruptcy reorganization good or bad?
Bankruptcy and reorganization are inseparable from the environment, no matter whether the environment is good or bad. In the short term, bankruptcy reorganization will lead to the loss of the interests of retail investors, which is negative. In the long run, bankruptcy and reorganization may inject new vitality into the company, and it is good for retail investors to make profits. Generally speaking, bankruptcy reorganization is to activate assets and regain business ability, which is good for stocks. On the one hand, it is to enable the company to obtain the ability to re-operate, on the other hand, it is to improve the repayment rate of creditors and protect their interests.
If there is no merger or other capital injection from other companies in the bankruptcy reorganization of listed companies, then listed companies will withdraw from the market and enter the third board market, and the bankruptcy reorganization at this time is bad. If there are acquisitions or mergers of other companies in the bankruptcy reorganization of listed companies, then listed companies will usher in new capital injection and new team management companies, and the bankruptcy reorganization of listed companies will have new vitality. It is good to go bankrupt and reorganize at this time.