New management company to acquire bankrupt Neta Auto

Just Auto reports that Hozon New Energy Automobile Company, the bankrupt parent of Chinese BEV start-up Neta Auto, is set to be acquired by Zhejiang Taiyi Shanglian Enterprise Management Partnership. The management company, established earlier this year by Zhejiang Shanzi Holdings Company and Zhejiang Shanzi Yuxu Technology Company, has proposed a CNY 3 billion restructuring plan to acquire a 70.6% stake in Hozon.

The plan allocates CNY 1.17 billion to resolve legacy debt issues, including paying off creditors, covering bankruptcy expenses, and restructuring costs. The remaining CNY 1.83 billion will be used as working capital to restart production and sales operations, reconstruct supply chains, and restore after-sales networks. The automaker will initially focus on producing SUVs before expanding its operations and developing new global intelligent electric vehicle models.

Brief written by urgent.news from Yahoo Finance's own syndicated text. Machine-written — may contain errors; check the original before relying on it.