Non-performing assets of an enterprise refer to the net losses and potential losses (funds) that have not been dealt with by the enterprise, as well as the estimated loss amount of various problem assets that should be set aside for asset impairment according to the provisions of the financial accounting system. Non-performing assets is a general concept, which is aimed at the bad debts in accounting subjects, mainly but not limited to the non-performing assets of banks, governments, securities, insurance, funds and enterprises.
The disposal of non-performing financial assets refers to the activities of banking financial institutions and financial asset management companies in the early stage of asset disposal, such as asset disposal mode selection, asset pricing, asset disposal scheme formulation, approval and implementation. The relevant provisions of these Guidelines also apply to the divestiture (transfer), acquisition and management of assets related to the disposal of non-performing financial assets.
Disposal of non-performing assets:
1, litigation recovery
Judicial litigation is the last barrier for financial asset management companies to safeguard national financial claims, and it is also the most commonly used means of debt collection in economic activities. Some enterprises have difficulties in operation, but it does not mean that they have lost all their repayment ability. Some rely on their own operating income and have a certain source of debt repayment. However, some enterprises ignore credit, use various excuses to delay repayment, and use various means to evade debts.
2. Asset reorganization
Asset restructuring includes debt restructuring, enterprise restructuring, asset conversion and merger and reorganization, in which debt restructuring includes debt repayment, debt extension, asset replacement, commercial debt-to-equity swap, discount realization and agreement transfer. Its essence is debt restructuring of debt enterprises, some extend the repayment period, some make new arrangements on interest rates, some may make discounts on interest receivable, and some may also make appropriate discounts on principal.
3. Debt-to-equity swap
Debt-to-equity swap refers to the creditor's rights of a bank to an asset management company, which is independently evaluated by the asset management company and approved by the relevant state departments, and converted into the equity of the asset management company to the enterprise, and the asset management company holds shares by stages and manages its shares.