According to Automobile Commune, hundreds of suppliers gathered at Nezha Auto’s Shanghai headquarters today to hold a supplier meeting to discuss Nezha Auto’s debt issue. Nezha Automobile said,It is planned that 70% of the debt will be converted into equity of the parent company Hezhong Automobile, while 30% of the debt will be paid off in cash, but in the form of interest-free installments.
Regarding Nezha Automobile’s debt repayment plan, some suppliers said: This is to tie all creditors and suppliers to the chariot.
According to Nezha Automobile, the first supplier conference held at the Tongxiang headquarters last week was mainly aimed at suppliers with tens of millions of debts. This is the second time, and supplier debts are generally in the millions.
Nezha Automobile also announced the progress of Series E financing at this supplier conference.The payment was originally scheduled to arrive in March, but was delayed to April due to risks. It was approximately 3 billion yuan, corresponding to half of the equity.
Regarding the rumors that Nezha Automobile has disbanded its R&D team, Nezha Automobile stated that the news is untrue and that it is promoting organization and process optimization.
In addition, Nezha Auto is currently mired in debt and facing financial risks. According to insiders, Nezha Auto’s debt may reach tens of billions of yuan.