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    Chinese automaker Lifan announces public recruitment of investors for bankruptcy reorganization

    Xinhua | Updated: 2020-08-28 10:27
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    A worker disinfects a dormitory of Lifan Group as preparation for the resumption of work on the next day, in Beibei district of Chongqing municipality in Southwest China, Feb 19, 2020. [Photo/Xinhua]

    CHONGQING -- Chinese car and motorcycle maker Lifan Industry (Group) Co Ltd on Wednesday announced public recruitment of investors as a local court in Southwest China's Chongqing municipality ruled to accept its bankruptcy reorganization.

    Lifan currently has an annual output capacity of 150,000 complete motor vehicles and 300,000 automotive engines, while it also produces 1 million motorcycles, 1 million motorcycle engines and 1 million general gasoline engines every year, according to the announcement.

    The total assets of qualified investors should not be below 20 billion yuan (about $2.9 billion), the announcement said.

    Through the participation of investors, Lifan is seeking to optimize its asset, debt and equity structures, safeguard the legitimate interests of creditors, as well as integrate industrial resources for future transformation and upgrade.

    Founded in 1992, the Chongqing-based auto manufacturer is the first private passenger vehicle enterprise listed on China's A-share market. However, the company's production and operation have been deteriorating in recent years due to its less competitive products.

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