Henan bus operator does a U-turn after citing lack of funds for halting services
Hours after suspending bus services due to a shortage of cash, Shangqiu's bus operator in central China's Henan Province said it would resume operations.
The company apologized for the previous announcement that bus service will be discontinued from March 1 due to "severe operational difficulties."
"The company is facing severe financial problems," Shangqiu Bus said earlier today. "We cannot afford to pay salaries and social security benefits, and we have no money to pay the electricity bills for buses or auto insurance."
The Jinan Times quoted an employee as saying that the staff had not been paid for five months.
The initial announcement was removed shortly after its publication.
The local government is looking into Shangqiu Bus's finances in an effort to overcome difficulties and ensure the operation of services.
It's not the first time a bus company has gone bankrupt. Bus operators in Mohe, Heilongjiang Province, and Jianchang County, Huludao, Liaoning Province, announced the suspension of services but resumed them after local governments intervened.
Shangqiu is located 200 kilometers east of Zhengzhou, the provincial capital of Henan Province in central China. The city has a population of 7.72 million and no Metro system. Shangqiu Bus is the city's sole passenger bus operator.