Fast Technology March 21 news, NETA Auto is deeply mired in debt, in addition to layoffs and salary cuts at the end of last year, it has recently been confronted with joint debt collection by suppliers.

It is reported that recently, over a hundred suppliers gathered at the NETA Auto Shanghai headquarters to hold a supplier conference to discuss NETA Auto's debt issues.

The senior executives of Neta present at the meeting said in an interview with reporters that this conference was a discussion between Neta and its suppliers on self-rescue plans.

Everyone works together to get through difficult times, this is not a confrontational relationship,If Nezha goes bankrupt, then it's 0, we get nothing, and the same goes for us, with unpaid wages. We hope this company can recover and move forward.

After discussions between both parties, NETA Motors stated that it plans to convert 70% of the debt into equity of the parent company, HOZON Auto, while the remaining 30% of the debt will be repaid in cash, though in the form of interest-free installments.

However, regarding the "debt-to-equity" proposal put forward by Nezha Motors, some suppliers have stated: This is tying all creditor suppliers to the chariot.

The report states that the total amount owed by Neta Motors to suppliers currently accounts for nearly 2/3 of the total liabilities, with total liabilities approaching 10 billion yuan.Due to high debt, the potential investor hopes that Nezha will reduce its debt before they are willing to invest.

Neta stated that the prerequisite for the investors to put in money is debt resolution, because now Hozon has too much debt. If this investment is entirely used to pay off the debt, it would be like throwing money down the drain. Therefore, this is a requirement proposed by the investors.

Neta Auto also updated the suppliers on the latest progress of the current round of financing, which was originally scheduled to be received in March but has been delayed to April due to risks. The leading investment is 3 billion yuan, corresponding to half of the equity of Neta Auto's parent company.

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

At the meeting, a Nezha employee from the R&D department also revealed to the media,Currently, the salaries in the R&D department are still being paid at a 50% reduction. Given the poor market conditions and limited job opportunities, it is hoped that Nezha can persevere.