Beijing firm eyeing to seize control of Ukrainian jet engine manufacturer goes bankrupt
Feb 23, 2022
Beijing [China], February 23 : Beijing firm, Xinwei Technology Group has gone bankrupt that was eyeing to seize control of Ukrainian engine manufacturer Motor Sich, one of the world's largest manufacturers of missiles, helicopter and jet engines.
A Beijing court assigned a law firm to manage the bankruptcy of Beijing Xinwei Technology Group. The Beijing No. 1 Intermediate People's Court appointed Haiwen Law Firm on Tuesday as the bankruptcy liquidation administrator for Beijing Xinwei, court documents showed. Creditors can file debt claims by May 5, reported Caixin Global.
Xinwei said in a statement that it "will continue pushing forward the purchase of Motor Sich in a bid to change the course of the bankruptcy," although the deal has hit a deadlock due to national security concerns in Ukraine.
Beijing Xinwei has sought to take over Motor Sich for the past few years through its subsidiary Beijing Skyrizon Aviation. But Ukraine regulators have held up the deal on national security grounds, reported Caixin Global.
Last year, Ukraine and the US Commerce Department imposed sanctions on Beijing Xinwei and Beijing Skyrizon, stymieing the takeover bid.
Beijing Xinwei was delisted from the Shanghai stock exchange in June 2021 after reporting losses of 26.5 billion yuan in the previous four years, reported Caixin Global.
