Έwe have some good news and some bad news for her G . The good news is that one day there may be a movie about what happened. The bad news is that the company has officially gone bankrupt.
A Shenzhen court has accepted Huaxing Bank bankruptcy. That means there will be a reorganization of the company, and Gionee hired restructuring consultants last week. Founder Liu Lirong believes the company can reverse this situation in around 3-5 years.
However, Gionee owes a total of CNY 20,2 billion (approximately $ 3 billion) to 648 creditors. About half of the debt is in banks. Earlier this year the company failed to pay suppliers . Advertising companies have not been paid either.
Problems for Gionee got worse when Liu Lirong (founder and president) lost more than CNY 1 billion in a casino, or about $ 144 million!
He claims that he did not use the company's money, but admits that he may have "borrowed some company funds". Like we said, this whole story could easily become a movie.
By comparison, Liu claims that the company lost about CNY 100 million ($ 14,4 million) per month between 2013 and 2015. So the total monthly losses have doubled in the last two years.
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