On the morning of November 28, Gionee Mobile held a meeting of creditors for some large-scale suppliers at its Shenzhen headquarters. At this meeting, some suppliers have reached a consensus with the manufacturer on the handling of claims.
The large-scale suppliers refer to suppliers with debts above 80 million yuan ($11.5 million). Previously, on November 23, Gionee had convened a meeting of creditors of financial institutions or banks. At that time, almost all bank creditors basically agreed to bankruptcy reorganization as a solution.
A number of small-scale suppliers told the jiemian journalists that Gionee’s meeting for creditors was being carried out in batches. First, the problem of funding for large-scale suppliers was solved. As for the small-scale suppliers, they don’t know when it will happen. According to some suppliers, the company currently has more than 400 suppliers of large and small loans, and the total amount owed is about 5 billion yuan ($0.72 billion). It was noted, among the suppliers came to the meeting were Shen Tianma, Vico Essence, Oriental Bright Color, and Xinwangda that are either listed companies or their subsidiaries focusing on making batteries, molds, screens, etc.
Some Gionee suppliers have made issues concerning the depths accumulated by during past few years. Say, Yuxin, which is one of the main component suppliers of Gionee, said that the company has cooperated with Gionee since 2015. The cooperation amount between the two parties is currently close to 400 million yuan ($57.5). But since October last year, the company began to delay the payments and affected the company’s operations. So if they can’t get the money back, they will file a lawsuit against Gionee.
A representative from the PCB supplier said that in April 2017, the company began to stop supplying parts to Gionee. ‘Cooperation has been started since 2012, the previous partnership was not bad. Gionee was among the top five partners of the company. But in 2016, the amount of arrears reached 8-9 million yuan ($1.15-1.29 million)’.
Now the meeting is over. A representative from one of the participating suppliers said that the meeting did not reach a specific program consensus for the time being, but most of the suppliers agreed to the bankruptcy reorganization route. It is expected that there will be a final plan in a week or two.