Beijing (ZXZC)- The commercial vehicle subsidiary of BAIC Group, Foton, announced that its subsidiary Beijing Borgward received a court-ordered seizure for its RMB2.2 billion worth of assets, petitioned by creditors.  

BX5; photo credit: Borgward

According to Foton, the figure involved in the case is RMB124 million, the book value of the sealed-up property is RMB2.209 billion.

Foton disclosed that the seizure would hit Beijing Borgward hard and make it harder for Foton to claim its debts. Foton has filed for a seizure on Beijing Borgward’s assets on November 11th, and the court has yet to act on the petition. Given that Beijing Borgward’s assets are currently seized for other creditors, Foton can only wait its turn.

The announcement indicated 34 companies listed as creditors in this petition, seizing Beijing Borgward’s assets, including machines, transportation equipment, office facilities, IT devices, tools, other equipment, constructions in progress, and inventory. The listed properties did not belong to Foton and were not part of the assets that Beijing Borgward used to pay its debt to Foton.

Earlier on October 27th, Foton released an announcement stating that it has successfully petitioned the court to freeze UCAR Inc.’s 500 million shares in Beijing Borgward due to its un-paid equity transfer and interest. UCAR Inc.’s 500 million shares of Beijing Borgward will remain frozen from September 8th, 2021, to September 7th, 2024.

Due to Beijing Borgward’s inability to pay its borrowings from Foton, the court also seized RMB190 million worth of UCAR Inc.’s assets as the guarantee of Beijing Borgward. 

Later on, on November 18th, Foton furthered its claim, and the court seized another RMB1.645 billion of assets from UCAR Inc.