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Huachen Auto, parent of BMW's Chinese JV partner, goes into bankruptcy restructuring
Published on: 2020-11-23
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The Shenyang Municipal Intermediate People’s Court in northeast China’s Liaoning Province, where the company is based, on Friday accepted the restructuring application filed by a creditor.

The court said the auto firm had insufficient assets to pay off its debts, but it was worthwhile and possible to rescue the company through restructuring.

The state-owned conglomerate is the parent of Brilliance China Automotive Holdings, which teamed up with German carmaker BMW to form a joint venture called BMW Brilliance Automotive in 2003.

The company has been struggling with debts and loss-making of its self-owned brands, a situation exacerbated by the COVID-19 outbreak. Last month, it triggered concern after defaulting on a 1-billion-yuan (US$152 million) bond.

Sources with Huachen said the restructuring only involves its own brands, and its joint ventures with BMW and Renault will not be affected.

On Friday, China’s top securities watchdog said it has taken measures against Huachen Automotive Group Holdings and relevant intermediaries.

Workers assemble vans at the production unit of an auto plant of Brilliance China Automotive in Shenyang City

A special inspection into the group’s bond default has been launched, which has caught market attention, the China Securities Regulatory Commission said in a statement on its official website.

The commission issued a warning letter to the group on Friday, and decided to file an investigation into its illegal information disclosure and suspected violation of laws and regulations.

It simultaneously conducted checks on intermediary agencies involved in the group’s relevant bonds, with relevant illegal acts investigated and punished, according to the statement.

Since the launch of the joint venture in 2003, BMW has invested over 52 billion yuan in Shenyang and completed the building of two automotive factories, one powertrain plant, and one research and development center.

千亿华晨破产重整,坐拥宝马却破产

11月20日,就在汽车业内都在为2020年收官之战的广州车展忙碌之际,老牌车企华晨集团却以进入重整程序的方式引发业内关注。当天,辽宁省沈阳市中级人民法院正式裁定受理债权人对华晨汽车集团控股有限公司(以下简称“华晨集团”)重整申请,这标志着华晨集团正式进入破产重整程序。

目前,华晨集团旗下拥有华晨中国、金杯汽车股份有限公司、上海申华控股股份有限公司等4家上市公司,160余家全资、控股和参股公司。此外,旗下“中华”、“金杯”、“华颂”三个自主品牌以及“华晨宝马”、“华晨雷诺”两个合资品牌。

破产重整落定后,金杯汽车以及申华控股紧急发布公告称,公司生产经营不会受到影响,但可能波及公司股权结构等方面。受破产重整消息影响,华晨中国短线上扬,申华控股和金杯汽车纷纷涨停。业内人士认为,华晨集团的重整主体是华晨集团,影响按照华晨集团的资产线,包括股权而散发,华晨宝马等合资公司影响不大。

不过,就在当天,证监会表示,已依法对华晨汽车集团开展专项检查,对华晨集团采取出具警示函的行政监管措施并决定对其涉嫌信息披露违法违规立案调查,对华晨集团有关债券涉及的中介机构进行同步核查,严肃查处有关违法违规行为。

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