According to reports coming out of China, Gionee has officially declared that it is bankrupt. Shenzhen Intermediate People’s Court has accepted the application of liquidation by Huaxing Bank.
While the future of the company is uncertain with some analysts stating Gionee may bounce back after a reorganisation, citing reports that Gionee had hired consultants who specialise in organisation restructuring which has also been confirmed by Gionee’s founder.
According to the founder Liu Lirong, “it is expected that the bankruptcy reorganistation process will be entered next month, and then the court will take over.”
The process is expected to take three to five years.
Gionee owes a total of around $3 billion to over 500 creditors with majority of the sum being owed to banks.