Zotye Automobile shares unfrozen by one court, immediately refrozen by another

Zotye Automobile Company Limited announced that 334,723,549 shares held in its special account for the disposal of assets of bankrupt enterprises, along with related bank deposits, were ordered unfrozen by the Yongkang City People's Court. This decision followed the company's application based on sufficient collateral to secure creditor rights and support business resumption.

Despite the unfreezing, the same block of 334,723,549 shares, representing 6.64% of the company's total share capital, will remain judicially frozen by the Shenzhen Luohu District People's Court. This new freeze is related to a lawsuit involving approximately yuan 79 million. Zotye Automobile is actively communicating with creditors and the Shenzhen Luohu District People's Court to partially or entirely lift this new freeze, citing concerns over potential over-freezing and the impact on the company's ability to dispose of remaining unrestricted shares.

The company noted that a portion of the frozen shares are reserved by the administrator for debt repayment and are not owned by Zotye Automobile. The administrator has also raised objections to the Shenzhen Luohu District People's Court regarding the scope of the freeze. Zotye Automobile emphasizes that the new freeze is not expected to pose a risk of forced liquidation or transfer, nor will it result in a change of the largest shareholder.