China Kejian, maker of some of China's most successful domestic mobile phones, is now facing angry creditors.
In an announcement made late last week, the company admitted for the first time that it could not repay the CNY42.7 million loan from Shanghai Pudong Development Bank. And according to published reports in China, the debt has gone far beyond that amount and has already reached CNY180 million.
Even worse, China Kejian reportedly has accounts receivable and uncollected sponsorships of CNY670 million and CNY530 million, respectively.
Since the company is unable to pay the debt, China Kejian is looking for both private and government loans to get itself out of its mess. However the recent departure of much of its executive staff have left the company lacking in sound management.