Parent of BMW's Chinese JV partner may undergo bankruptcy restructuring

BMW's Chinese JV's parent Huachen Automotive's bankruptcy could upset plans for an expected privatisation.
By : Reuters
| Updated on: 16 Nov 2020, 11:05 AM
File photo of a BMW logo (REUTERS)
File photo of a BMW logo (REUTERS)
File photo of a BMW logo (REUTERS)
File photo of a BMW logo

Brilliance Automotive Holdings, the Chinese joint venture partner of BMW, said its parent Huachen Automotive Group may undergo restructuring after a creditor filed an application to a Chinese court.

Huachen, owned by the government of Liaoning province, defaulted on a 1-billion-yuan ($151.88 million) bond last month, joining a growing number of delinquent state firms in a development that hit investor confidence and roiled China's credit bond market.

Trending Cars

Find More Cars

Huachen faces the prospect of restructuring after Gezhi Automobile Technology Co filed an application to the Shenyang Intermediate People's Court for restructuring of Huachen, Hong Kong-listed Brilliance Auto said in an exchange filing on Sunday. It remains uncertain whether the restructuring application will be accepted by the court, it said.

FOLLOW US:Stay Updated with latest content - Subscribe us on
FOLLOW US:Stay Updated with latest content - Subscribe us on

(Also read | BMW CEO says he is weighing options for mobility JV with Daimler)

Bondholders see a bankruptcy restructuring by Huachen to be unfavourable as they will likely end up getting little out of the process.

Huachen's bankruptcy would have little impact on the operation of Brilliance but could upset plans for an expected privatisation, Daiwa Capital Markets said in a note to clients.

A Huachen representative declined to comment.

First Published Date: 16 Nov 2020, 11:05 AM IST
Recommended For You
View All
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking VIEW OFFERS you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city