Photo from UNIAN
Back in early 2019, the Chinese company's debts stood at US$300 million.
China-based Beijing Xinwei Technology, a potential buyer of one of the major post-Soviet aviation assets, Ukraine's aerospace company Motor Sich, which supplies aircraft engines and gas turbine units to more than 100 countries, has declared bankruptcy.
Read alsoUkroboronprom head updates on status of Motor Sich deal with China
Back in early 2019, the Chinese company's debts stood at US$300 million. In the first through the third quarters of 2019, its net loss amounted to US$2.3 billion, Ukraine's TV Channel 24 said on December 19. As was earlier reported, China-based Skyrizon Aircraft and Xinwei Technology Group were buying more than 50% of Motor Sich. In case of the green light from Ukraine's Anti-Monopoly Committee for the purchase of Motor Sich, the investors pledged to provide US$100 million in grants to Ukraine's aircraft industry. More than 25% of the shares would remain with Ukraine's state-run Ukroboronprom military-industrial concern.
There are a lot of mixed and disturbing information about Beijing Xinwei Technology and its chairman, Wang Jing, the publication said.
Since 2012, Beijing Xinwei Technology has been boosting its turnover through loans with partners, which in fact were their units. So, the company launched an initial public offering (IPO). After the scheme had been published by the media, from December 2016 to July 2019, the stock trading was halted. In July-2019, Beijing Xinwei Technology announced the completion of its restructuring and resumed trading: the price of the share was US$2.02 in July and US$0.22 in December.
In September 2019, Wang Jing's assets as the company's shareholder (31%) and chairman were partially blocked for three years due to delays in payments for Beijing Xinwei Technology's loans. Back in 2013, Wang Jing was granted the right from the Government of Nicaragua to build a canal worth US$50 billion to connect the Caribbean and the Pacific Ocean. He planned to invest US$300 million of his own funds, but the project was phased out in 2018 after only access roads had been built, the TV Channel 24 said.
The publication is wondering what could happen to the Ukrainian aircraft company.
"According to media reports, Wang Jing acquired shares of Motor Sich from loans taken from the China Development Bank. If he does not have money to pay off the debt, the shares will become the property of the bank, which will be able to sell them in parts to anyone, for instance the Russians or sell them back to Ukraine," the article said.