1. Heavy debts: Baotou Steel Group has a long history and accumulated a lot of debts. Before entering bankruptcy reorganization, its debt ratio was already high and its financial situation was worrying.
2. Policy support: The government carried out supply-side reform of the steel industry, aiming at optimizing the industrial structure, improving industrial concentration and solving the problem of overcapacity. As an important iron and steel enterprise, Baotou Steel Group hopes to promote industry reform and adjustment through bankruptcy and reorganization.