Zotye Auto announces default on maturing debts

Zotye Automobile (SZSE:000980) announced that it has defaulted on RMB 18,003.36 million in maturing debts, representing 14.58% of its latest audited net assets. The defaults involve multiple creditors, including China Construction Bank and Zheshang Bank. The announcement also reveals that the company’s total cumulative defaults on maturing debts now stand at RMB 34,005.04 million. Zotye is actively negotiating with creditors to reach a debt resolution and exploring options like loan refinancing and asset disposal to alleviate liquidity pressures. The company cautioned investors about potential risks and advised them to exercise caution.