Neta Auto Announces Supplier Debt Plan: Aims to Convert 70% of Debt into Parent Company Equity

Fast Technology March 19 news, according to Auto Commune reports, today hundreds of suppliers gathered at NETA Auto's Shanghai headquarters to hold a supplier conference, discussing NETA Auto's debt issues.

and NETA Auto stated,70% of the debt will be converted into equity in the parent company, Hozon Auto, while 30% of the debt will be repaid in cash, though on an interest-free installment basis.

Regarding the debt repayment plan for Nezha Motors, a supplier said: This is tying all creditor suppliers to the chariot.

According to Neta Auto, the first supplier conference held last week at the Tongxiang headquarters was mainly for suppliers with tens of millions in debt. This time it is the second one, where the debts of suppliers are generally in the millions.

Neta Auto also announced the progress of its Series E financing at this supplier conference.Originally scheduled to arrive in March, but due to risks delayed until April, approximately 30 billion yuan, corresponding to half of the equity.

Regarding the rumor of Neta Auto dissolving its R&D team, Neta Auto stated that the information is inaccurate, and instead, they are promoting organizational and process optimization.

In addition, NETA Auto is currently mired in a debt quagmire and faces financial risks. An informed source revealed that NETA Auto's debt could be at the level of tens of billions of yuan.