Xiaoming's 700,000 Depositors May Get Cut of Bankrupt Bike Sharer's Assets
Xu Wei
DATE:  May 22 2018
/ SOURCE:  Yicai
Xiaoming's 700,000 Depositors May Get Cut of Bankrupt Bike Sharer's Assets Xiaoming's 700,000 Depositors May Get Cut of Bankrupt Bike Sharer's Assets

(Yicai Global) May 22 -- Users who have not received their deposits since bike-sharing firm Yueqi Information Technology Co. (Xiaoming Bike) went bankrupt, can declare their creditors' rights by law, said Guangdong Consumer Council. Creditors' rights refer to a legal procedure of obtaining repayment based on the debtor's assets.

The consumer watchdog clarified the channels, procedures and a deadline for exercising the creditors' rights in a statement on May 18. The Guangdong-based firm collected approximately CNY800 million in deposits from over 4 million users during its operations since 2016. It has refunded 80 percent of the deposits so far, though those of 700,000 users' remain outstanding.

Guangzhou Intermediate People's Court required Yueqi to refund the deposits within ten days after the verdict was given on March 22, as well as publish information about the management of this sum, and issue an apology.

The company is unable to make the payments and will face liquidation, predicted Chinese news outlet National Business Daily.

Xiaoming Bike has ceased operations and Yueqi said in court that it does not plan to file an appeal. Once the period of ten days passed, the firm had failed to return the deposits. The council applied to the court for enforcement measures on the case.

Overall, shared-bike users may have paid CNY10 billion (USD1.6 billion) in deposits in China, according to a report issued by the China Internet Network Information Center in August last year.

The public has called on regulators to set up more rules on bike operators and required firms to keep independent bank accounts to ensure they can afford to pay back the deposits, reported state-run news outlet China Daily.

Editor: Emmi Laine

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Keywords:   Xiaoming Bike,BIKE-SHARING,Bankruptcy,Yueqi Information Technology Co.,Guangdong Consumer Council