- Gionee has reportedly entered bankruptcy
- The company was facing a cash crunch for some time now
- Gionee is said to owe around $3 billion to 648 creditors
Gionee has reportedly gone under and entered bankruptcy. GSMArena reports that a court in Shenzhen, China, has accepted the application for liquidation bankruptcy by Huaxing Bank against the smartphone manufacturer. However, there’s still a chance that this might turn into a reorganisation since Gionee is said to have hired restructuring consultants last week and its founder and Chairman, Liu Lirong, thinks that the company might get be able to get back in business in 3-5 years. However, this seems a bit of a stretch since the company is said to owe around $3 billion to 648 creditors and half of the amount to banks. The company has reportedly failed to pay suppliers and ad agencies.