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

China Evergrande New Energy Vehicle

05/08/2024 01:46

(Updates with further details and background from paragraph 2
onwards)
       Aug 5 (Reuters) - China Evergrande New Energy Vehicle
 0708.HK  said on Monday 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 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 reorganised. 
    The firm said a local court hearing was held on Aug. 2, and
the court ordered the units to engter into such proceedings. 
    The EV unit of embattled real estate developer China
Evergrande Group  3333.HK  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. 

 (Reporting by Rishav Chatterjee in Bengaluru; Editing by Rashmi
Aich and Michael Perry)
 ((Rishav.Chatterjee@thomsonreuters.com;))