China Evergrande’s EV units to enter bankruptcy, reorganisation proceedings
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China Evergrande New Energy Vehicle said a local court ruled that two of its units should enter into bankruptcy and be reorganised.
PHOTO: REUTERS
Bengaluru – China Evergrande New Energy Vehicle said on Aug 5 that a local court had ruled that two of its units should enter into bankruptcy and be reorganised, a week after individual creditors of the units filed for such proceedings.
Shares of the electric vehicle (EV) maker plunged 7 per cent on July 29, a day after individual creditors of Evergrande New Energy Vehicle (Guangdong) and Evergrande Smart Automotive (Guangdong) sought court approval for the units to go through bankruptcy proceedings and be reorganised.
The firm said a local court hearing was held on Aug 2 and the court ordered the units to enter into such proceedings.
The EV unit of embattled real estate developer China Evergrande Group in May updated the market that its liquidators were in talks with a potential buyer to take a stake in the company, thereby increasing chances of extending a new credit line for the firm to support production. REUTERS
