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, reported Reuters.
Huachen, owned by the government of Liaoning province, defaulted on a RMB 1 billion ($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, said Reuters.
Huachen faces the prospect of restructuring after Gezhi Automobile Technology 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.
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