Auto group files for bankruptcy
Print Edition
Huachen Automotive Group Holdings has entered bankruptcy restructuring.
The Shenyang Municipal Intermediate People’s Court in northeast China’s Liaoning Province, where the company is based, on Friday accepted the restructuring application filed by a creditor.
The court said the auto firm had insufficient assets to pay off its debts, but it was worthwhile and possible to rescue the company through restructuring.
The state-owned conglomerate is the parent of Brilliance China Automotive Holdings, which teamed up with German carmaker BMW to form a joint venture called BMW Brilliance Automotive in 2003.
The company has been struggling with debts and loss-making of its self-owned brands, a situation exacerbated by the COVID-19 outbreak. Last month, it triggered concern after defaulting on a 1-billion-yuan (US$152 million) bond.
Sources with Huachen said the restructuring only involves its own brands, and its joint ventures with BMW and Renault will not be affected.
On Friday, China’s top securities watchdog said it has taken measures against Huachen Automotive Group Holdings and relevant intermediaries.
A special inspection into the group’s bond default has been launched, which has caught market attention, the China Securities Regulatory Commission said in a statement on its official website.
The commission issued a warning letter to the group on Friday, and decided to file an investigation into its illegal information disclosure and suspected violation of laws and regulations.
It simultaneously conducted checks on intermediary agencies involved in the group’s relevant bonds, with relevant illegal acts investigated and punished, according to the statement.
Since the launch of the joint venture in 2003, BMW has invested over 52 billion yuan in Shenyang and completed the building of two automotive factories, one powertrain plant, and one research and development center.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
