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Hozon New Energy Vehicles, the company behind the Neta electric car brand, has disclosed details about its ongoing bankruptcy restructuring, with creditor claims reaching approximately 5.1 billion yuan (around $716.4 million) so far.
A total of 1,631 creditors have submitted claims, potentially exceeding 26 billion yuan, according to the company based in Shanghai. The firm also announced that it recently conducted its first online meeting with creditors, three months after the bankruptcy proceedings were initiated.
Additionally, Hozon Auto reported outstanding unpaid wages of about 460 million yuan to over 5,000 employees. The company also has accounts receivable totaling 9.3 billion yuan and maintains a cash reserve of approximately 15.46 million yuan.
Founded in 2014, the automaker entered bankruptcy restructuring in June, with an administrative team formed by lawyers from Zhejiang Haihao Law Firm, Zhejiang Zicheng Law Firm, and Shanghai Junyue Law Firm.
To keep Neta’s operations running smoothly, Hozon Auto is engaging in talks with suppliers to ensure continuity of key in-vehicle infotainment systems. With over 400,000 current owners, maintaining the stability of this customer base is considered vital to preserving the brand’s value. The company emphasized that if operations were to halt, protecting the rights and interests of existing owners would become highly challenging.
Meanwhile, the delayed salary payments over the past six months have resulted in a talent exodus from some core roles. In response, Hozon Auto has introduced measures such as paying full salaries to current staff, limiting executive compensation, and suspending payments to founding partners.
The company highlighted that its overseas business remains a significant asset and a focus for potential investors. Neta launched its international expansion in 2022, setting up operations in Thailand and Indonesia. Its global user base has now surpassed 25,000 consumers.
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