![]() is the first foreign carmaker with wholly owned operations in China through its Shanghai gigafactory. The requirement for a Chinese partner will be removed for all vehicle types in 2022. The German carmaker announced its €3.6 billion joint venture in 2018 after Chinese authorities said they would gradually ease joint venture rules. 17 report that its plan to raise its stake in BMW Brilliance Automotive to 75% from its current 50% holding will not be affected by debt issues at Huachen. "Given the finite amount of resources local governments have, they will only help out that can stand on their own feet," said Su.īMW told Reuters in a Nov. It comes as no surprise that Huachen is restructuring without a bailout as there are precedents involving other state-owned enterprises. Under Chinese law, creditors can freeze assets of debtors' subsidiaries but not those of sub-subsidiaries, Morningstar analyst Ivan Su noted in a response to S&P Global Market Intelligence. 30 to transfer its 30.4% stake in Brilliance China Automotive to its subsidiary Xinrui has effectively turned Brilliance China Automotive into a subsidiary of a subsidiary. 24 in a filing to the exchange that it defaulted on the repayment of a 1 billion yuan corporate bond.īrilliance China Automotive's Hong Kong-listed shares on Nov. The state-owned enterprise announced Oct. Huachen had 46 billion yuan in assets and debt of 52.4 billion yuan as of the end of June, the court filing said, citing data from the Shanghai Stock Exchange. A spokesperson at Huachen declined to comment to Reuters and directed it to the Xinhua report. Huachen's restructuring will not involve Brilliance China Automotive or BMW Brilliance Automotive Ltd., its joint venture with Bayerische Motoren Werke AG, Xinhua reported, citing an unidentified Huachen executive. 13 filed an application with the Liaoning Shenyang Municipal Intermediate People's Court to restructure Huachen after the holding company failed to pay bills with interest amounting to 10.2 million yuan. 20 after a provincial Chinese court accepted an application from a creditor of the state-owned entity, Reuters and Xinhua News Agency reported, citing a court filing.Īuto mold supplier GZ Tooling Group on Nov. Huachen Automotive Group Holding Co.Ltd., the parent of Brilliance China Automotive Holdings Ltd., entered restructuring proceedings on Nov. ![]()
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