Neta Auto Malaysia Denies Parent Company Bankruptcy Claims

Neta Auto Malaysia (Intro Synergy Sdn Bhd) has issued an official statement in response to recent social media allegations concerning the bankruptcy of its parent company, Hozon Auto. The company has denied these claims, and further explained that a bankruptcy application was filed by a creditor, Yuxing Advertising, over a debt dispute with the parent company — an action described as a standard legal procedure.

Neta Malaysia also affirmed that its operations in Malaysia are unaffected and will continue normally. “All current business functions including sales, vehicle deliveries and aftersales services, especially spare parts, are ongoing without disruption,” Neta Auto Malaysia said in the statement.

These recent events follow reports of Neta and its struggles back in its home market. Production stalled in November due to mounting debt, and the company reportedly reduced salaries and laid off employees, including its whole R&D department.

Said reports point to a debt-to-equity swap agreement with 134 suppliers last month worth CNY2 billion (~RM1.3 billion). As part of said deal, 70% of the unpaid balance will be turned into Hozon Auto equity, with the remaining 30% being considered as interest-free debt that will be paid back in 15 monthly instalments beginning in May.

Through this proposal, the automaker is reported to have gained support from suppliers and battery manufacturers like CATL and Gotion High-tech. Furthermore, the Chinese automaker also seems to have received a grant of THB10 billion (~RM1.3 billion) credit line from an unspecified Thai financial institution.

(Source: Neta Facebook, Paultan.org, Caricarz)

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