Rumors come true Brilliance Auto enters bankruptcy reorganization process!

[Auto Home? News]?On November 20, the Shenyang Intermediate People's Court ruled to accept the creditor's application for Brilliance Automotive Group Holding Limited (Brilliance Automotive) to reorganize, marking the car company's formal entry into the bankruptcy reorganization process. The court's decision said that Brilliance Group has insufficient assets to settle all its debts, and has the reasons for bankruptcy stipulated in the Enterprise Bankruptcy Law, but at the same time, the group has the value and possibility of salvage, and has the necessity and feasibility of reorganization.

The national enterprise bankruptcy and reorganization case information network on November 13, public information shows that Brilliance Automotive Group Holdings Ltd. was applied for bankruptcy and reorganization, the applicant for the Gezhi Automotive Technology Company Limited, the case number for (2020) Liao 01 broken Shen 27th. Shenyang Intermediate People's Court of Liaoning Province, the latest proceedings show that the ruling was applied for "bankruptcy". In this regard, Brilliance announced on November 15 that the company has received a written notice from the court, but whether the reorganization application is accepted by the court and whether Brilliance enters the reorganization process is still uncertain.

'The latest court proceedings show that Brilliance Automotive "bankruptcy"

Enterprise search information shows that Brilliance Automotive was founded in 2002, the legal representative of Yan Bingzhe, the company is currently **** there are 16 executed information, the current total amount of nearly 400 million yuan was executed. Brilliance Automotive is a state-owned enterprises, by the Liaoning Provincial People's Government, State-owned Assets Supervision and Administration Commission of 80% of the shares, the Liaoning Provincial Social Security Fund Council 20% of the shares, which means that, as long as the local government of Liaoning Province, continue to Brilliance Automotive injection of capital, the company will not be easy to bankruptcy, but the reorganization or the necessary procedures will be carried out.

Brilliance Automotive is indeed facing multiple difficult problems, and this year, it is because of the debt problem has been the focus of outside attention. Brilliance Group announced on November 16, said Brilliance Group has constituted a debt default amounted to 6.5 billion yuan, the amount of overdue interest amounted to 144 million yuan. Because of the enterprise funds are tight, renewal of credit approval has not been completed, resulting in the inability to repay. This debt default has had an impact on the production and operation of Brilliance Group's headquarters, leading to the deterioration of its financial position and greatly affecting its ability to repay its debts.

'Brilliance announced the company's "potential reorganization" risk'

On the other hand, the outside world is more concerned about, if Brilliance Automotive into a bankruptcy crisis, whether it will affect the share ratio with BMW deal? According to the plan, the BMW Group will pay 3.6 billion euros (about 28.1 billion yuan) in 2022 to increase its stake in BMW Brilliance to 75%, thus realizing the holding of BMW Brilliance.

The BMW Group stated on November 17 that there is no indication that its deal to increase its stake in BMW Brilliance will be affected by the debt problems of Brilliance's parent company. In addition, the Liaoning government wants BMW to increase its stake in the joint venture as planned and expand local car production capacity, according to foreign media reports.

'BMW says deal to increase stake in BMW Brilliance unlikely to be affected'

Editor's comment:

Objectively speaking, it is unlikely that Brilliance will go bankrupt because from the Liaoning government's point of view, the Brilliance Group has made a big contribution to the local jobs and tax revenues, etc. On the other hand, bankruptcy may lead to the loss of state-owned assets and other situations and Brilliance is not yet in a situation where it is insolvent. On the other hand, bankruptcy may lead to the loss of state capital, and Brilliance Automobile is not yet in a situation of insolvency, and there is still a possibility of salvage. Therefore, the court ruled that its bankruptcy reorganization is also focused on the "reorganization".

For Brilliance Group itself, the more serious problem is that the autonomous sector in the end can not support the development of the entire group and foothold, otherwise, in the BMW Brilliance contribution to the profits of half of the draw, its autonomous sector "naked swimming" drawbacks will be presented, and if the performance continues to deteriorate, the reorganization of the end is likely to be difficult to be good. (Text/Auto Home? Song Aiju)