Shanghai (ZXZC)- Sino-French joint venture Renault Brilliance Jinbei Automotive Co.,Ltd. (RBJ) applied to a court for the corporate reorganization on Dec. 30, according to the state-run Xinhua News Agency.

Jinbei Haise King; photo credit: RBJ

Xinhua's report said RBJ has already halted work at the plant in Shenyang, capital of Liaoning province. The joint venture is being slapped with capital chain rupture and insolvency, and cannot afford to pay wages and social insurance premiums for employees, according to the media outlet, citing a person with knowledge of the matter.

Under the articles of association, the French parent Renault Group is in charge of the joint venture's operations and management business. RBJ adopted a slew of measures, including cost reduction and product quality improvement, since June 2020 to boost its sales. However, amid the rapid transition of light-duty commercial vehicle market, the company still faces gloomy operational performance and development prospect. Given the inability to assume debts, RBJ has to launch the restructuring procedure.

RBJ was incorporated in Dec. 2017 with a registered capital of $1.796 billion. It is 51% and 49% held by Shenyang Jinbei Automotive Industry Holding Co.,Ltd., a wholly-owned subsidiary of Brilliance China Automotive Holdings Limited, and Renault Group respectively. The joint venture primarily engages in producing and selling Jinbei-branded buses and MPVs.