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Recently, the Chongqing bankruptcy court held a hearing on the selection of managers in the bankruptcy reorganization of BAIC Yinxiang and Chongqing BAIC Magic Speed Automobile sales Company. In the end, Chongqing Lida Law firm and Daxin Accounting firm (Special General Partnership) Chongqing Branch were jointly elected as the managers of the above two cases.

Prior to the hearing organized by the Chongqing bankruptcy Court, it was concluded that all the assets of BAIC Yinxiang and BAIC Magic Speed were no longer enough to pay off all debts, and BAIC Yinxiang had a sound automobile manufacturing system and sufficient technical reserves. BAIC Magic Speed has a good market foundation, mature automobile distribution management system, perfect sales team and after-sales service team. The two companies have the value of reorganization and rescue, and the necessity and possibility of reorganization, so they ruled to accept the bankruptcy reorganization applications of BAIC Yinxiang and BAIC Magic Speed.

BAIC Yinxiang and BAIC Magic Speed entered the bankruptcy restructuring process, but the future is still bleak. In July 2018, BAIC Yinxiang factory issued a holiday notice: due to operational difficulties, BAIC Yinxiang stopped production for 40 days. Since then, the dealer can no longer pick up the car and obtain vehicle accessories from the manufacturer, but still pay the car pick-up money, if the car pick-up task is not completed, the dealer will also be fined by the manufacturer.

Therefore, in April 2019, a number of BAIC Yinxiang dealers went to BAIC's headquarters to protect their rights in order to recover hundreds of millions of yuan in advance paid by dealers to BAIC Yinxiang, and the dealers reached a repayment agreement with BAIC Group. promised to pay off all the arrears by October 2019, but this promise finally fell through.

For the dealer's debt problem, BAIC Yinxiang has also put forward two disposal plans, but it has not been recognized by the dealers.

On May 13 this year, BAIC Yinxiang and Chongqing BAIC Magic Speed gathered 25 dealers across the country and announced a debt disposal plan-BAIC Yinxiang hopes to repay all the dealers' arrears at a 40% discount over eight years and repay interest in the first five years. The principal will be repaid from the sixth year.

After the introduction of the new debt disposal plan, BAIC Magic Speed dealers were strongly dissatisfied. On July 10, BAIC Yinxiang adjusted its repayment plan. Except for a 40% discount on the debt, the other terms are as follows: if the dealer debt is less than 1 million yuan, 20% will be repaid after the restructuring, and the rest will be repaid within five years; if the dealer debt is more than 1 million yuan, or in the process of restructuring, it can be repaid in the form of debt-to-equity, or in accordance with the previous plan, the interest will be repaid in the first five years and the principal will be repaid in 6-8 years.

According to the new repayment plan, we need to wait until BAIC Yinxiang restructuring is completed, the general bankruptcy restructuring starts for two to three years, for dealers, this repayment plan is too variable.

Data show that BAIC Yinxiang is an automobile company established by Beijing Automobile Group and Chongqing Yinxiang Enterprise Group in 2011, in which BAIC Group holds 26% of the shares as the single largest shareholder, and its Guokai Development Fund Co., Ltd. holds 12.65%. Chongqing Yinxiang holds 61.35% of the shares as the actual controlling shareholder. BAIC Magic Speed is a brand launched by BAIC Yinxiang in March 2014. by 2017, BAIC Yinxiang's annual sales have reached a peak of 300000 vehicles, and the current BAIC Yinxiang is in the same predicament as Zhongtai, Lifan and other domestic brands.

In the case of a big reshuffle of automobile industry rules, BAIC Yinxiang has neither good product support nor public reputation, and domestic brands have suffered a reshuffle, which has also added a lot of uncertainty to BAIC Yinxiang after restructuring. Some dealers have said, "now only want to recover the arrears, even if BAIC Yinxiang bankruptcy restructuring success will not continue to cooperate."

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