Gionee Gone Bankrupt Enters Liquidation


Gionee declares itself bankrupt. A court in Shenzhen has accepted the application for liquidation bankruptcy by Huaxing Bank. Gionee owes a total of CNY 20.2 billion (around $3 billion) to 648 creditors. It owes half of the amount to banks and earlier this year reports should that Gionee was unable to pay suppliers and Ad agencies haven’t been paid too.

The company’s money problem aggravated when the Founder and Chairman Liu Lirong lost a whopping CNY 1 Billion bet in a Casino which is equivalent to $144 million! He claims he didn’t use company money admits he may have “borrowed company funds”. This bankruptcy looks like it would be hitting the Big Screens Sometime Soon!!!

For comparison, Liu claims that the company was losing around CNY 100 million ($14.4 million) a month between 2013 and 2015. The losses per month doubled in the last two years.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Advertisements
Advertisements
%d bloggers like this: