A few days ago, the national enterprise bankruptcy reorganization case information network released information, Brilliance Auto Group Holding Co., Ltd. was filed for bankruptcy reorganization, the applicant for Gezhi Automotive Technology Co., LTD.

        According to the public information, Gezhi Automotive Technology Co., Ltd. is an automotive stamping die research and production company, engaged in the design, research and development, manufacturing and sales of automotive stamping die, mainly for the global automotive oems and parts manufacturers to provide customized automotive stamping die services.

        Brilliance Auto's bankruptcy filing is directly related to its current debt; According to public data, brilliance group's total liabilities reached 132.844 billion yuan in the first half of this year. After deducting goodwill and intangible assets, its asset-liability ratio was 71.4%. The balance of cash and cash equivalents at the end of the period was $32.677 billion. ; In addition, as of October this year, Brilliance Auto has issued a total of 34 bonds and 14 surviving bonds, with a total balance of 16.2 billion yuan.

        Affected by the debt, several credit rating agencies of Brilliance Auto downgraded the main credit rating of Brilliance Auto from AA- to BBB, with a negative outlook. In addition, Brilliance Auto has been enforced by the court for failing to fulfill its legal obligations on time for 19 times this year, with a total amount of 167 million yuan and nearly 390 million yuan at present. But the good news is that Brilliance Auto has total assets of 170 billion yuan and is not insolvent yet.

       Brilliance auto's dilemma, the main reason comes from the weak development of independent sector, after years of development are mainly depends on the development of brilliance BMW, according to the results, in the five years from 2015 to 2019, if excluding brilliance BMW's profits, brilliance auto has been losing money, the cumulative loss of 3.484 billion yuan, while the brilliance BMW profit contribution for a total of 26.9 billion yuan.

       However, no one knows what will happen next for Brilliance Auto. According to a person familiar with the matter, the government of Liaoning province, one of Brilliance China's largest shareholders, has recently communicated with financial regulators about a restructuring of the group, leaving the bankruptcy in doubt. Moreover, BMW is also actively helping its partners to send a 50 billion yuan spare parts purchase order to Brilliance in July this year. In August, it also transferred 20 BMW experts from Germany to Brilliance China to help improve its business level.