In response to the recent online rumors of a new bankruptcy review case, the official WM Motor stated that the company will not give in and certainly will not collapse. They hope to solve their financial debt issues by adjusting their corporate strategy, encouraging investor participation in restructuring and development, and undertaking proactive self-rescue measures.
The content of the 'Notification Letter' is as follows: Since its establishment at the end of 2015, WM Motor has always aimed to provide high-quality products and excellent services. The company is committed to providing the best solution for new energy smart cars that the average Chinese citizen finds delightful and affordable. With the support and assistance from the governments of cities such as Shanghai, Wenzhou, Huanggang, Hengyang, Mianyang, Chengdu, as well as WM Motor users, employees, partners, and shareholders, the company achieved rapid growth. However, in recent years, due to the impact of the pandemic, downturns in the capital market, significant fluctuations in raw material prices, and challenges in obtaining operational development funds, WM Motor faced operational difficulties. For the inconvenience caused, WM Motor sincerely apologizes. Yet, the company is determined not to give in and will actively self-rescue by adjusting its corporate strategy, addressing its financial debts, and seeking investor participation in restructuring and development.
To ensure the maximum protection of the rights and interests of WM Motor users, employees, partners, and shareholders, upon the application by WM Motor Technology Group, and given that the company still has commercial and salvage value, has a sound corporate governance structure, and possesses the ability to negotiate autonomously—with some creditors willing to restructure—the Third Intermediate People's Court of Shanghai accepted the pre-restructuring application of WM Motor Technology Group on October 7, 2023.
The purpose of pre-restructuring is to maximize the market's leading role and judicial guidance function, aiming to save companies from their predicaments as early as possible. For companies in distress that still have restructuring value and their related stakeholders, negotiations will be conducted based on the principle of party autonomy to promote the feasibility of restructuring and renewed growth. WM Motor's pre-restructuring will introduce strategic investors globally, aiming for a resurgence. Through the pre-restructuring process, WM Motor will thoroughly review the company's operations and business models, fully optimize various departments and business segments to reduce costs, improve efficiency, and achieve sustainable development. WM Motor will communicate and negotiate thoroughly with creditors, shareholders, and potential investors to reach the best solution. Simultaneously, WM Motor will actively cooperate with relevant parties to disclose information about the pre-restructuring progress to all stakeholders in a timely, comprehensive, and accurate manner as per the law.
