© Reuters. FILE PHOTO: Flags with the logo of BMW flutter at the venue of a ground breaking ceremony for a new BMW assembly plant, inside the BMW Brilliance Plant Tiexi, in Shenyang, Liaoning province, China October 11, 2018. REUTERS/Norihiko Shirouzu

BEIJING (Reuters) -Shen Tiedong has been named as chairman of Huachen Group, parent of BMW’s China partner Brilliance Auto, according to a Brilliance Auto wechat post on Monday.

Huachen is standing on the brink of bankruptcy, defaulting on billions of yuan in debt obligations. Chinese regulators have launched an investigation into possible violations of disclosure laws by the company.

Brilliance makes vehicles with BMW in the northeastern Chinese city of Shenyang. It also has a joint venture with Renault SA (OTC:RNLSY).

Yan Bingzhe, Huachen’s former chairman, will step down, the post said. It did not offer details of how Huachen plans to repay the debts.