Zotye Auto Announces Repayment of Nearly 400 Million Yuan in Debt

Gasgoo Munich- Zotye Auto announced on January 27 that it has completed early repayment of relevant debts to the bank.

Image source: Company filing screenshot

According to the filing, Zotye had previously signed a civil mediation agreement with the Yongkang Branch of Bank of China. The agreement required Zotye to repay a total of 222 million yuan in principal, interest, and legal fees. The terms stipulated a payment of 10 million yuan in principal and 178,000 yuan in legal fees by December 31, 2025, with the remaining balance due by January 31, 2026.

Separately, Zotye, Zhejiang Kingdom Door Co. Ltd., and Zhejiang Zotye Auto Manufacturing agreed to repay the Yongkang branch of China Construction Bank 183 million yuan. The schedule required 10 million yuan by December 31, 2025, with the remainder due by the end of January 2026. By the December 31 deadline, Zotye had paid the Bank of China branch 10 million yuan in principal and 178,000 yuan in legal fees, while remitting 10 million yuan to the China Construction Bank branch.

Zotye stated that as of the filing date on January 27, it had cleared the remaining balance of 212,014,262.93 yuan owed to the Bank of China branch and 172,833,512.50 yuan owed to the China Construction Bank branch. Under the mediation terms, the company has now fully discharged its repayment obligations to both lenders.

In a separate filing the same day, Zotye disclosed that it and its subsidiaries still face a pile of overdue debt. As of January 27, the total principal of matured but unpaid debt stood at 208.92 million yuan.

Image source: Company filing screenshot

Zotye filed for bankruptcy liquidation in 2020 after insolvency halted its operations. A court accepted its restructuring proposal in June 2021, and by October of that year, Jiangsu Shenshang Holding Group was named the lead investor. Yet the restructuring faltered, hampered by a lack of liquidity, leaving Zotye's vehicle manufacturing business in a prolonged state of stagnation.

To navigate its ongoing operational and debt crisis, Zotye has recently moved to offload assets and restructure liabilities.