(Yicai) Sept. 12 -- Hozon New Energy Automobile, the owner of the Neta electric vehicle brand, has revealed details of its bankruptcy reorganization, with creditor claims reaching CNY5.1 billion (USD716.4 million) so far.

A total of 1,631 creditors have filed claims, which could eventually amount to more than CNY26 billion, the Shanghai-based company announced today, revealing that it has just held its first online meeting with creditors, three months after the bankruptcy process was first announced.

In addition, Hozon Auto said that it owes about CNY460 million in unpaid salaries to over 5,000 employees. The company also said it has accounts receivable of CNY9.3 billion, and Neta has a cash balance of about CNY15.46 million.

Formed in 2014, Hozon Auto entered bankruptcy restructuring in June and has an administration team that was set up by Zhejiang Haihao Law Firm, Zhejiang Zicheng Law Firm, and Shanghai Junyue Law Firm.

To maintain normal operations at Neta, Hozon Auto said it is in talks with suppliers to keep in-vehicle infotainment service systems running. Neta’s owner base numbers over 400,000 and the stability of this owner community is crucial for the preservation of the brand’s value, it said, adding that if the company were to cease operations, it would be difficult to protect the rights and interests of the owners.

Meanwhile, the six-month delay in salary payments has led to a talent drain in some core positions. In response, Hozon Auto is implementing measures such as paying full salaries to existing staff, capping the salaries of some high-paid executives, and suspending salary payments to founding partners.

Neta’s overseas business remains a key asset and a major area of focus for potential investors, Hozon Auto said. Neta began its international expansion in 2022, establishing operations in Thailand and Indonesia, and its total overseas user base has exceeded 25,000.

Editor: Tom Litting