Lifan filed for bankruptcy

Lifan filed for bankruptcy

October 14, 2020 0 By autotimesnews

The company launched a reorganization process and a search for investors.

The coronavirus pandemic was very strong in the auto industry and, in particular, affected the Lifan brand, which declared bankruptcy in August of this year, and recently the company’s management held the first meeting with creditors, where the scale of the disaster was announced. It is noted that both buyers and dealers have long had complaints about the quality of cars. In addition, the lineup itself leaves much to be desired.

By the way, the brand’s management also proved to be ineffective. The founder of the brand, Ying Mingshan, retired at the venerable age (82 years), transferring control to his son Ying Sidi and daughter Ying Suowei, as well as his wife Chen Qiaofeng. At the same time, according to the founder himself, his family members were not interested in running the company. In April 2020, the 25-year-old granddaughter of the founder Ying Anni, who by that time had not even graduated from the institute, became the head of Lifan.

On August 7, it was reported that the brand had filed for bankruptcy, which were upheld on August 11. Until the end of September, the company received 489 claims from creditors totaling 1.13 billion yuan ($ 168 million). By the way, the brand’s assets are estimated at half the price and the proceeds from them will be used to pay off wage arrears. The company also has 160 civil and arbitration claims worth 870 million yuan.

The brand lost 2.6 billion yuan in the first half of 2020. Only an investor can save the situation, while there is currently no information about those wishing to invest in the company.