Chinese court initiates pre-restructuring at tire machinery maker Safe-Run

Suzhou, China – A Chinese court has initiated "pre-restructuring" proceedings for leading tire machinery maker Safe-Run, according to a 9 Jan announcement issued by the Suzhou Intermediate People’s Court.

In its notice, the court said it had begun the “public recruitment of an operating and management trustee” to take charge of day-to-day operations.

During the management period, the entrusted party has the right to “organise the production, operation, and other work of Safe-Run,” the Chinese-language court announcement noted.

The court stated that the move is intended to “maintain the company’s asset and operating value” and to “safeguard the interests of creditors.”

It added that Safe-Run “currently has the basic conditions to continue operations” and retains “quality customer resources.”

The entrusted management, the court said, will focus on Safe-Run’s main business of moulding machines, ensuring the production and delivery of moulding machine orders.

The development comes amid a separate, long-running legal dispute in which a Chinese court recently upheld a ruling against Safe-Run over trade secret infringement claims brought by VMI. (ERJ report)

Established in Kunshan, Jiangsu province, China, in 2009, Safe-Run specialises in R&D, manufacturing, installation and servicing of industrial equipment, with a core focus on tire machinery.

Its key products include “intelligent semi-steel radial tire single-stage building machines”, hydraulic curing presses and related automation equipment, according to the court document.

The company is also engaged in industrial robot manufacturing and software development linked to tire production equipment.

The court said Safe-Run’s assets include industrial land and buildings in Kunshan, production machinery and equipment, as well as “patents, trademarks and proprietary technologies.”

It added that the company has 41 machines on order across six customers, although deliveries under those contracts are overdue.

The court has not declared bankruptcy or liquidation.

Instead, it said the pre-restructuring process is aimed at stabilising operations while a trustee is selected and a potential restructuring plan is assessed.