Brilliance Auto Group Holdings Co., Ltd. announced that at present, Brilliance Auto has constituted a total debt default of 6.5 billion yuan, and the total amount of overdue interest is 144 million yuan.

Due to the company's financial constraints, the renewal credit approval was not completed, resulting in the inability to repay.

The debt default of Brilliance Group has had an impact on the production and operations of Brilliance Group, leading to the deterioration of its financial situation and greatly affecting its debt repayment ability.

Currently, Brilliance Group has a huge debt of more than 100 billion.

Brilliance Group's 2020 bond semi-annual report shows that the group's total liabilities are 132.844 billion yuan. After deducting goodwill and intangible assets, the asset-liability ratio is 71.4%.

The balance of cash and cash equivalents at the end of the period was 32.677 billion yuan.

? A few days ago, Brilliance Auto's supplier (Gezhi Automotive Technology Co., Ltd.) applied to the Shenyang Intermediate People's Court of Liaoning Province to reorganize Brilliance Auto Group Holdings Co., Ltd.

Gezhi Automotive Technology Co., Ltd. stated that Brilliance Automobile cannot pay off its due debts and its assets are insufficient to pay off all debts, so it has a high restructuring value.

Brilliance Auto was filed for bankruptcy and reorganization, and the trigger was debt default, which was a series of chain reactions.

Brilliance Auto Group has a lot of debts, and judging from the financial statements of Brilliance Auto Group, it is difficult to repay the debts now.

On the other hand, as a key provincial and municipal enterprise, Liaoning Province will not ignore it, but it will not bear all its debts.

Therefore, Brilliance Automobile Group will not go bankrupt and liquidate, and the next step is likely to be reorganization.

Shenhua Holdings and Jinbei Motors, subsidiaries of Brilliance Auto, have successively issued announcements stating that there are still major uncertainties as to whether the reorganization application submitted by creditors will be accepted by the Shenyang Intermediate People's Court and whether Brilliance Group will enter the reorganization process.

If it enters the reorganization process, it may have a certain impact on the company's equity structure and other aspects.

It is worth noting that Brilliance Auto indirectly holds shares in Shenhua Holdings and Jinbei Automobile, and has debt relationships with both parties.

However, both Shenhua Holdings and Jinbei Automobile emphasized in their announcements that the company has independent and complete business and independent operating capabilities. The restructuring of the controlling shareholder will not have an impact on the company's daily production and operations. As of now, the company's production and operation are normal.

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