Renowned car company declares: court ruling to end bankruptcy proceedings! Mercedes Benz | Beijing Baowo | Court
The bankruptcy of Baowo Automobile, once known as one of the "top four German cars," is making new progress.
Recently, the Beijing First Intermediate People's Court issued the Civil Ruling No. 91-7 (Jing 01 Po 91), which concluded the bankruptcy proceedings of Baowo Automobile Company.
The court ruled to terminate the bankruptcy proceedings of Baowo Automobile
On June 26th, Foton Automobile announced that the company had received the Civil Ruling No. 91-7 issued by the Beijing First Intermediate People's Court, which ruled to terminate the bankruptcy proceedings of Baowo Automobile Company.
In fact, as early as November 29, 2022, the Beijing First Intermediate People's Court ruled to declare Baowo Automobile Company bankrupt. On June 16, 2023, the court made a Civil Ruling (Jing 01 Po 91-5), approving the bankruptcy property distribution plan of Baowo Automobile Company. On June 26, 2023, the court ruled to terminate the bankruptcy proceedings of Baowo Automobile Company.
According to the Civil Ruling, the Beijing First Intermediate People's Court believes that after executing the property distribution plan, the administrator of Baowo Automobile Company submitted a report on the execution of the bankruptcy property distribution plan and requested this court to rule to terminate the bankruptcy proceedings. According to the report and the application to terminate the bankruptcy proceedings, the administrator has executed the property distribution plan and has now completed the execution. The remaining bankruptcy assets have been reserved. If there is any recovered property in the future, the administrator will distribute it according to the content of the subsequent bankruptcy property distribution plan in the property distribution plan. The administrator's application for the termination of bankruptcy proceedings complies with legal provisions. After the bankruptcy proceedings are concluded, the administrator shall continue to perform their duties in accordance with the law.
According to relevant regulations, the court has ruled as follows: terminate the bankruptcy proceedings of Beijing Baowo Automobile Co., Ltd. This ruling shall take effect from today.
Foton Motor stated that the bankruptcy of Baowo Automobile Company will not affect the company's existing main business and will not affect its continued operation. Investors are advised to pay attention to investment risks.
Baowo Automobile Bankruptcy Property Distribution Plan Finalized
On June 16th, Foton Motor announced the latest progress in the distribution of assets related to the bankruptcy of Baowo Automobile.
The court, in accordance with Article 58, Paragraph 2 of the Enterprise Bankruptcy Law of the People's Republic of China, has ruled that the total amount of confirmed creditor's rights related to Foton Automobile is approximately RMB 3.884 billion, of which there are property guaranteed creditor's rights totaling RMB 2.508 billion; The total amount of ordinary debt is 1.376 billion yuan.
It is understood that the total assets of Baowo Automobile Company are 361 million yuan, and the priority repayment amount for secured creditors is 253 million yuan. The total amount of bankruptcy assets of Baowo Automobile Company after deducting the priority repayment amount of the above-mentioned secured creditors is 108 million yuan.
Foton Motor stated that as a creditor of Beijing Baowo, the company can currently distribute bankruptcy assets worth approximately 48.4351 million yuan. Foton Motors has made a significant impairment provision for related assets of Baowo Automobile Company in 2021.
In the past, Mercedes Benz was on par with Mercedes Benz
Now bankruptcy has come to an end
It is understood that Baowo Automobile is a century old German car brand. After being acquired, Beijing Baowo once claimed to be named "BBBA" along with Mercedes Benz, BMW, and Audi.
In 2014, Beiqi Foton previously spent 5 million euros to acquire the Baowo brand and established Beijing Baowo Automobile Co., Ltd. in January 2016. However, due to poor product market response and unsatisfactory performance, Baowo Automobile eventually became the "abandoned child" of Beiqi Foton.
In December 2018, Foton Motors successfully transferred 67% equity of Baowo Automobile to Changsheng Xingye. In 2019, Shenzhou Youche completed its acquisition of Baowo Automobile. After the transaction was completed, Shenzhou Youche directly became the largest shareholder of Beijing Baowo.
Shenzhou Youche leverages its accumulated channel resources and advantages in car sharing platforms over the years to jointly launch a new strategy with Baowo Automobile, announcing the launch of a new retail platform for Shenzhou Baowo Automobile. Through industrial chain transformation and platform empowerment, it comprehensively realizes the separation of production and sales, channel reshaping, restructuring automobile consumption, and redefining new automobile retail.
However, after a series of attempts and struggles, Baowo Automobile still faced its fate of bankruptcy. On April 8th last year, Beijing Baowo also released an open letter to the majority of Baowo car owners, stating that Baowo cars are facing a debt crisis and are facing bankruptcy. With the support of relevant government departments and a responsible attitude towards car owners, appropriate arrangements have been made for the after-sales service guarantee of Baowo Automobile. Baogewo Automotive Technology Co., Ltd. fully undertakes the after-sales service responsibility of Baogewo automobiles, and continues to provide maintenance services and parts supply to car owners in accordance with the original after-sales service policy.
