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Debt-Ridden Smartphone Maker Gionee Lines Up Rescuer

Shenzhen-based Gionee has been hit by a liquidity crunch since January. Photo: VCG
Shenzhen-based Gionee has been hit by a liquidity crunch since January. Photo: VCG

A private Chinese smartphone maker facing a mounting debt crisis said it lined up an unidentified government-backed rescuer.

Gionee Communication Equipment Co.’s finance chief told a meeting of more than 50 suppliers and creditors Wednesday at the company’s headquarters that a company with a “state capital background” is planning to take over Gionee and that a restructuring is on the horizon. The chief financial officer, He Dabing, said the company’s total liabilities amount to 20 billion yuan ($3.1 billion).

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