(Yicai) July 9 — A court in China has declared the car production joint venture of GAC Group and Stellantis bankrupt, nearly three years after it entered bankruptcy restructuring following a slump in sales.
The Changsha Intermediate People’s Court declared GAC Fiat Chrysler Automobiles bankrupt yesterday due to insufficient assets to cover its debts and the inability to restructure or reach a settlement, the JV’s administrator announced the same day.
It has total debt obligations in excess of CNY8.1 billion (USD1.1 billion), of which CNY4 billion is undisputed debt, but only CNY1.9 billion (USD266.7 million) in assets, according to the court ruling. A creditors’ meeting approved the asset distribution plan, which will proceed…