(Yicai Global) July 13 -- Chinese smart electric vehicle startup Byton is facing a mounting crisis, with its creditor pushing for liquidation, The Paper reported.

Shanghai-based software developer Eccom Network System applied to the Qixia District People’s Court in Nanjing for compulsory liquidation and bankruptcy of Byton yesterday, according to corporate information platform Tianyancha. But the court rejected the application, as Byton is still seeking reconciliation with its creditor, the report said.

Formed in 2016, Byton secured investment from big backers including Tencent Holdings, Foxconn and automaker FAW Group. The Nanjing-based company has not produced any vehicles and has been closed since last July.

Apple supplier Foxconn planned to raise its stake in Byton in January, Bloomberg reported recently. The move was suspended after state-owned FAW took charge of the management of Byton, the report said on July 7, adding that Foxconn is now likely to withdraw its backing, which could deal a further blow to the struggling carmaker.

Byton told The Paper that its main shareholders FAW and Foxconn will work in cooperation and send senior managers to help move toward production of its first vehicle.

Editor: Tom Litting