AsianFin -- Neta Auto has reached a debt-to-equity agreement with 134 of its key domestic suppliers, amounting to more than 2 billion RMB, as part of its efforts to prepare for the resumption of production and operations.

According to multiple media reports, the company has proposed a debt restructuring plan, under which 70% of the suppliers' debts will be converted into equity of Neta Auto's parent company, Hozon Auto. The remaining 30% will be treated as interest-free deferred debt, with payments to be made in installments over 15 periods, starting in May this year, with one payment per month.

This move is seen as a crucial step in Neta Auto's efforts to stabilize its financial situation and ensure the smooth continuation of its operations.

The debt-to-equity conversion aims to alleviate the immediate financial pressure while strengthening the relationship with suppliers by offering them a stake in the company’s future growth.