Romoss restructuring plan stalls amid debt settlement disputes
Chinese battery manufacturer Romoss has hit a roadblock in its 'rebirth plan' as creditors reject a debt settlement proposal at 30 percent of face value.
The attempted restructuring of power bank manufacturer Romoss has stalled due to persistent debt issues. Sources indicate that prospective investors have conditioned their participation on the company 'cleaning up' its balance sheet, prompting Romoss to offer creditors a settlement at just 30 percent of their outstanding claims.
Industry analysts note that this offer effectively forces creditors to write off more than 70 percent of their debt, with little assurance of future payment given that the company has been effectively shuttered for over a year. The debt structure is particularly complex, involving a large number of small-to-medium-sized suppliers across various regions, which complicates negotiations and keeps legal costs high as many suppliers pursue litigation.
Communication between Romoss and its supply chain has deteriorated. Reports suggest that staff members responsible for supplier relations have been furloughed, leaving creditors to interact with the firm via third-party agencies. This lack of direct engagement has further eroded trust among the supplier base.
The company has remained in a state of suspended operations since July 2025. These financial woes follow a major product safety recall in June 2025 involving nearly 500,000 units due to overheating risks.