Human Horizons appears to be on the verge of insolvency
Even though an insolvency administrator is already involved, this is still a so-called pre-restructuring phase. In this phase, which lasts six months and can be extended by three months if necessary, Human Horizons must work with the insolvency administrators to protect assets, manage operations prudently and attract strategic investors. This period is seen as a final attempt to avoid complete bankruptcy.
The process is comparable to insolvency proceedings in self-administration as it is done under German law: The management remains active and in charge, but the insolvency administrator must approve important decisions. The idea is to prevent money from being extracted from the company before regular insolvency proceedings are initiated. However, the company still has the opportunity to seek investors in the form of creditor protection and to reorganise the business for the future.
The Human Horizons brand HiPhi initially caused a stir with very extravagant electric cars and later presented a Model Y competitor in the form of the HiPhi Y – the X and Z models were already available to order in Germany. However, HiPhi had to cease production in February 2024, when there was talk of a six-month break. Later, there were signs of hope in the form of alleged interest from Changan and a Hong Kong-based organisation. But apparently, a deal was never finalised. Instead of resuming production after the six-month break, it now looks more like a permanent end.
A few days ago, the People’s Court of the Yancheng Economic and Technological Development Zone granted an application for reorganisation. With this decision, the court also confirmed that Human Horizons can no longer pay its debts (which, according to Car News China, exceed the assets as of 30 April 2024). However, as the court saw restructuring potential in the company, the application was granted – instead of directly opening insolvency proceedings.
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