Mainland court to rule on Brilliance Auto bankruptcyBusiness | 20 Nov 2020 3:48 pm
The Shenyang Municipal Intermediate People's Court has accepted creditors' application for the reorganization of Brilliance Auto, meaning that the company entered the process of bankruptcy and restructuring officially.
The court said Brilliance Group assets are not enough to pay off all debts. But at the same time, the group could reorganize.
Brilliance Auto said the restructuring only involves the group's own brand segment, and does not involve the listed companies and joint ventures with BMW and Renault.
Brilliance Auto denied today that is is bankrupt.
The company has defaulted on debt of 6.5 billion yuan (HK$7.67 billion), mainland media reported.
The mainland court may announce a bankrupcy decision today, mainland media reported.
On November 13, Brilliance Auto filed for bankruptcy and reorganization on an application by GZ Tooling Group.
Qi Kai, vice president of brilliance group, said: "I haven't heard that. Everything is normal."
Brilliance Auto holds a 42 percent stake in Brilliance China Automotive (1114).