Today's automotive industry has a bit of a bleak taste. Both traditional car companies and new car manufacturers are laying off employees in order to maintain the normal operation of the company. As the former new force "Four Little Dragons", WM Motor has also carried out layoffs and salary cuts before.
Although layoffs can temporarily alleviate the financial pressure of the company, they cannot help WM Motor really get out of trouble. To this end, WM Motor tried to apply for a pre-restructuring to help itself get out of the quagmire.
Since almost no car companies have applied for pre-reorganization among the new car-making forces, many people do not know about pre-reorganization, and even see the news of WM Motor's application for bankruptcy review, and mistakenly think that pre-reorganization is equivalent to bankruptcy reorganization.
As the outside world has interpreted the pre-reorganization as bankruptcy and bankruptcy, WM Motor could not sit still, and responded to the pre-reorganization many times, saying that it was not a bankruptcy application, and the pre-reorganization was not the same as bankruptcy reorganization.
Although the pre-restructuring has been "demonized", it is very necessary for the current WM Motor.
First of all, during the pre-restructuring period, WM Motor can actively negotiate with creditors, existing shareholders and potential investors to improve WM Motor's debt repayment ability in order to alleviate debt pressure.
Second, the pre-reorganization process is open and transparent. Therefore, it is more conducive for strategic investors to understand the current situation and potential of WM Motor. At the same time, with the help of the pre-reorganization, WM Motor can further optimize its corporate governance structure and management team to attract investors' bets.
In addition, the most important point is that the pre-restructuring gives WM Motor the freedom to move forward and backward. If the pre-reorganization does not meet expectations, WM Motor will not directly enter the bankruptcy liquidation process. In other words, even if the pre-reorganization is unsuccessful, WM Motor can revoke the pre-reorganization and avoid bankruptcy.
Overall, the pre-reorganization is not terrible, and it is a good medicine for WM Motor in a difficult situation.