Renault, Brilliance China joint venture applies for restructuring

By Sarah Lizee

Olympia, Wash., Dec. 31 – Renault SA and Brilliance China Automotive Holdings Ltd.’s joint venture, Renault Brilliance Jinbei Automotive Co. Ltd., applied for restructuring with the Shenyang Intermediate People’s Court on Thursday, according to a Hong Kong Stock Exchange notice.

The restructuring is subject to the court’s approval.

“Due to intense competition of light commercial vehicles and deteriorating market conditions, RBJAC is facing financial problems and has not been able to meet its current financial obligations,” Brilliance China Automotive said in the notice.

Brilliance China Automotive said that through the restructuring, Renault Brilliance Jinbei seeks to restructure existing debt and invite strategic investors to invest and provide capital injection, which will be in the interest of Renault Brilliance Jinbei, as well as Brilliance China Automotive and its shareholders.

“The financial impact of the restructuring is in the process of assessment by the management of the company,” Brilliance added.

As of Thursday, the production of Renault Brilliance Jinbei has been suspended, but the group's other business operations continue as usual.

Renault and Brilliance China Automotive are car makers based in Boulogne-Billancourt, France, and Hong Kong, respectively. The joint venture is based in Shenyang, China.

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