China Evergrande's EV arm drops after creditors seek bankruptcy proceedings for units (updated)

China Evergrande New Energy Vehicle

29/07/2024 03:27

(Update stock move, add details)
       HONG KONG, July 29 (Reuters) - Shares of China
Evergrande New Energy Vehicle  0708.HK  fell 7% in Monday
morning trade after individual creditors of two of its units
sought court approval for the units to go through bankruptcy
proceedings and be reorganised.
    The electric car maker said its units Evergrande New Energy
Vehicle (Guangdong) and Evergrande Smart Automotive (Guangdong)
had received notice from a local court about the July 25
application.
    "The above notice has a material impact on the production
and operating activities of the company and the relevant
subsidiaries," the company said in a filing to the Hong Kong
bourse late on Sunday.
    The shares slid to HK$0.295 after initially making early
gains.
    Shares of China Evergrande New Energy Vehicle have dropped
nearly 40% so far this year.

($1 = 7.8068 Hong Kong dollars)

 (Reporting by Hong Kong newsroom; Editing by Christian
Schmollinger and Edwina Gibbs)
 ((donny.kwok@thomsonreuters.com; +852 3462 7745;))