Taiyi Shanglian Set to Acquire Majority Stake in Bankrupt Hozon New Energy Automobile Company
Hozon New Energy Automobile Company, the parent firm of Chinese electric vehicle startup Neta Auto, is set for acquisition by Zhejiang Taiyi Shanglian Enterprise Management Partnership. The proposed deal involves an investment of CNY 3 billion (US$447 million) to acquire a 70.6% stake in Hozon during its bankruptcy reorganization process. The restructuring plan includes allocating part of the funds for legacy debt resolution and operational costs, while the remainder will be used as working capital to restart production and sales operations. The company plans to focus on SUV models like Neta L and X, disposing of non-core sedan equipment. A three-stage recovery strategy outlines initial production resumption with a first-year target of 10,000 vehicles, followed by scaling up output and eventually preparing for an IPO. This acquisition aims to stabilize the company's operations while addressing warranty claims from its existing customer base and expanding into emerging markets.
Topics: Acquisition Automotive Bankruptcy Debt Restructuring