Dongbei Special Steel, which is in the midst of default and debt crisis, has officially submitted to the court its reorganization plan on July 10. Private enterprise Shagang Group's subsidiary and Bengang Steel Plates will participate in the management of the Dongbei Special Steel, both hold more than 50% of the shares in total. The remaining shares are converted from Dongbei Special Steel’s bank debt to equity, though it does not participate in business management. If Shagang Group's reorganization program was adopted, it would be in line with the policy of mixed ownership reform and balance the interests of financial institutions. Dongbei Special Steel reorganization attracts private capitals to participate in state - owned enterprise restructuring. If this is done well, it would become a positive demonstration; if it is not it would become a negative example. Liaoning Province and Dalian City should pay attention in this matter.