According to a notice from the country's national corporate bankruptcy information disclosure platform, China's Hawthorne New Energy Vehicles is the manufacturer (BEV) of Neta branded electric vehicles (BEVs) and is the subject of bankruptcy review cases filed by local advertising companies.

As news spread rapidly in local media, the troubled automaker was forced to deny growing speculation that it had filed for bankruptcy itself. A spokesperson confirmed that the company "has not filed for bankruptcy or taken any relevant steps internally."

The bankruptcy review case was filed by Shanghai Yuxing Advertising Company and handled by the court of Jiaxing, the provincial capital.

Hozon has been working to pay its suppliers and held a supplier meeting in March 2025 for the debt restructuring. The automaker later revealed that it has entered into debt equity agreements with 134 core suppliers, including major battery manufacturers CATL and Gotion High-Tech, worth more than $2 billion ($278 million).

Hozon has also been working hard to pay wages for months and has been laying off employees since October. The company sold about 100,000 vehicles worldwide last year, but delivered volumes fell 80%-90% in the first quarter of 2025.

An official at Hozon confirmed to a local reporter that “the advertising agency has exercised its legal right to conduct bankruptcy reviews on Hozon Auto” without providing further details.

The company also denied rumors that it was the subject of interest on acquisitions by other automakers, including Toyota Motor Corporation, including Toyota Motor Corporation, which the Japanese automaker also denied.

Neta aims to raise $4 billion CNY billion in E Series fundraising, aiming to increase the $4 billion CNY billion to $4.5 billion ($550 million to $662.4 million), while leading investors are expected to provide up to $3 billion in funding.

"Struggling Huosong Auto is subject to bankruptcy scrutiny" was originally created and published by global equity brand Just Auto.

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