Ofo rumor mill continues as they battle whispers of bankruptcy

Over the past few months, rumors of ofo’s mounting debt, lawsuits, and potential mergers have been making the rounds in local news headlines.

The latest one, surfaced yesterday, alleged that the Chinese bike rental firm is preparing for bankruptcy reorganization plans. The news was first reported by local media Jiemian.com, who claimed to have obtained a company financial statement from six months ago. The document indicated that, at the time, ofo’s debt was about RMB 6.5 billion, including RMB 3.65 billion of users’ deposit and RMB 1.02 billion owed to its suppliers. A brokerage company has reportedly started a proposal for ofo’s bankruptcy plans.

“Judging by the status quo, [ofo] might have been involved in lawsuits… Otherwise, it wouldn’t have filed for reorganization”, said Chen Shizhong, a lawyer at Beijing Jinsh Law Firm.

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