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China Evergrande's EV arm units to enter bankruptcy, reorganization proceedings


FILE - A woman walks in front of the China Evergrande Centre building sign in Hong Kong, China, Dec. 7, 2021
FILE - A woman walks in front of the China Evergrande Centre building sign in Hong Kong, China, Dec. 7, 2021

China Evergrande New Energy Vehicle said on Monday a local court had ruled that two of its units should enter into bankruptcy and be reorganized, a week after individual creditors of the units filed for such proceedings.

Shares of the electric vehicle maker plunged 7% 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 reorganized.

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.

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    Reuters

    Reuters is a news agency founded in 1851 and owned by the Thomson Reuters Corporation based in Toronto, Canada. One of the world's largest wire services, it provides financial news as well as international coverage in over 16 languages to more than 1000 newspapers and 750 broadcasters around the globe.

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