With a debt of $2.9 billion, Gionee declares bankruptcy

Chinese smartphone company Gionee, which owes nearly $2.9 billion to 648 creditors, has declared bankruptcy. As major creditors have filed lawsuits against Gionee, a Shenzhen court has accepted its bankruptcy application for liquidation bankruptcy by Huaxing Bank. Gionee has hired consultants to begin restructuring from next month and chairman Liu Lirong believes the company will recover in 3-5 years.