Chinese bike-sharing pioneer Ofo denies filing for bankruptcy
- News about a bankruptcy filing followed a rash of lawsuits over unpaid bills filed by Ofo’s suppliers
Chinese bike-sharing services pioneer Ofo, which has been slapped with lawsuits over unpaid bills by suppliers, has denied a report on Wednesday that it applied for bankruptcy.
“It’s totally false reporting,” Ofo said in a statement.
The denial was made in response to a report by Chinese news portal Jiemian, which cited anonymous sources as saying that a big securities institution was involved in Ofo’s plan to file for bankruptcy.
Citing data from Ofo’s balance sheet, the report said the Beijing-based bike-sharing firm had total debts of 6.5 billion yuan (US$932.9 million) from “around half a year ago”.
Ofo said it will pursue legal action to protect its rights. “Jiemian’s story seriously harmed Ofo’s reputation and brand,” the company said.
The report was published more than a week after Dai Wei, Ofo’s founder and chief executive, removed himself as the start-up’s legal representative amid a rash of lawsuits over unpaid bills. Bike suppliers Shanghai Phoenix Bicycles and Tianjin Flying Pigeon Cycle Manufacturing as well as logistics services providers Best and Deppon Logistics are among the firms that have recently sued Ofo.