Trust Application Advantages in Corporate Bankruptcy Reorganization: A Case Study of HNA's Bankruptcy Reorganization

Bankruptcy reorganization is a systematic approach that helps enterprises escape financial distress, mitigate bankruptcy crises, and restore independent management capabilities. Traditionally, the debt-to-equity swap model is employed to dilute shares in order to achieve debt repayment. However, this method does not fully protect the interests of creditors. By analyzing the trust scheme used in the HNA bankruptcy reorganization case, this article summarizes the process and advantages of using trust in corporate bankruptcy reorganization. Based on theoretical and practical conditions, and in conjunction with the current state of the economy and the bankruptcy reorganization market, the article discusses the various models of trust in corporate bankruptcy reorganization, as well as the conditions under which different models apply. The analysis indicates that trust has advantages when applied to corporate bankruptcy reorganization and shows promising prospects for the future.