Lifan is getting closer to bankruptcy

Lifan is getting closer to bankruptcy

August 12, 2020 0 By autotimesnews

The Chinese concern Lifan Holdings filed an application with the Fifth Intermediate People’s Court of Chongqing with a request for judicial reorganization due to the inability to pay off the accumulated debts – the company simply does not have enough assets.

According to experts, the company intends to reorganize a number of its divisions, including Lifan Passenger Cars and Lifan Import and Export. In other words, the company launched bankruptcy proceedings.

According to the portal Tech.sina.com, according to the rules of the Shanghai Stock Exchange, if the court accepts the application of creditors for the reorganization of the company, then its shares may be excluded from trading. Lifan Holdings currently owns about 618,542,656 shares of Lifan, accounting for 47.08% of the total share capital.

Recall that rumors about the bankruptcy of Lifan Holdings appeared at the end of 2019. The press service of the brand then commented on the situation with poor sales and stoppage of production – the Russian office of the brand did not agree with some data that had previously appeared in the media.

“Lifan Industry Group continues to develop and manufacture automobiles. The government intends to further support the company, as announced by Mr. Jin Lijia, a member of the party committee of the Banking and Insurance Regulatory Bureau, and Mr. Sui Jun, vice president of the Bank of Chongqing. According to Jin Lijia, creditors agree that Lifan is an enterprise that needs and can be helped. In turn, the Bank of Chongqing has developed a plan to stabilize the situation, and the company has started to implement it, ”the press service of the brand said.

In addition, the company noted that they did not sell their factories, but transferred the territory under their enterprise in Chongqing to the authorities. Some property was also sold, which allowed the company to receive about 10 billion yuan of income. These funds will be used to strengthen the production of new cars, as well as to develop them.

Interestingly, the Chinese media give Lifan a chance of survival only thanks to the motorcycle direction. With which, in fact, the company once started. In June this year, Lifan and telecommunications company China Mobile Chongqing joined forces to develop intelligent motorcycles.