Gionee facing bankruptcy as chairman gambles away $144M in casino
MANILA, Philippines – Chinese phone-maker Gionee's fortunes have shifted unfavorably as the company is reportedly nearing bankruptcy and its chairman caught up in a gambling issue after losing big-time at the casinos.
Gionee is said to have failed paying suppliers, Android Authority reported late Thursday, November 29.
The report, citing the Securities Times, said Gionee is working on a deal on the payments. GSMArena added this deal may have been with major suppliers, leaving out nearly 400 smaller companies from the payment deal.
The phone-maker's meeting follows an application for bankruptcy reorganization filed by 20 suppliers with Shenzen's Intermediate People's Court last November 20.
Gionee's chairman is also in the spotlight following concerns that he may have gambled away company money.
The Jiemian website (Chinese language) reported last week that Liu Lirong, Gionee's chairman, lost more than 10 billion yuan ($1.4 billion) gambling in Saipan. Lirong clarified this with Securities Times, saying the figure was closer to over one billion yuan ($144 million) instead. – Rappler.com