Creditor files for liquidation of Evergrande NEV's unit

China Evergrande New Energy Vehicle

05/09/2024 07:23

HONG KONG, Sept 5 (Reuters) - A creditor filed a
petition for the bankruptcy of a unit of China Evergrande New
Energy Vehicle Group  0708.HK , a subsidiary of China Evergrande
Group  3333.HK , in a Shanghai court, the third such petition
against the embattled car company.
    Trading in NEV shares was suspended at 0152 GMT on Thursday,
after the price dropped 5.4%. 
    A new bankruptcy proceeding could add pressure on the
liquidators of China Evergrande Group, the world's most indebted
property developer, to recover debt for creditors and a
potential investor in the electric vehicle company.
    Zhejiang Chint Electrics  601877.SS  filed a bankruptcy and
liquidation petition against manufacturing unit Evergrande
Hengchi New Energy Vehicle (Shanghai) Co in relation to an
overdue and unpaid debt, according to a filing dated Sept. 4 by
the No.3 Intermediate People's Court of Shanghai.
    The court said it will hold a hearing on Sept. 18 to decide
to accept the petition or not to start a bankruptcy proceeding. 
    Last month, a Guangzhou court ordered two other units -
Evergrande New Energy Vehicle (Guangdong) and Evergrande Smart
Automotive (Guangdong) - to enter into bankruptcy and
reorganisation proceedings, a move that the EV parent warned
would have "a material impact" on its production and operating
activities.
    Evergrande NEV last week announced a net loss of 20.3
billion yuan ($2.9 billion) in the first half, widening from a
6.9 billion net loss a year ago. 
    Its total liabilities rose 2.5% from end-December to 74.4
billion yuan, while total assets decreased 53% to 16.4 billion
yuan and total cash plunged 69% to 39 million yuan. 
    The company's auditor said the material uncertainties from
the financial results may have significant impact on the group's
ability to continue as a going concern.
($1 = 7.0999 Chinese yuan renminbi)

 (Reporting by Clare Jim; Editing by Stephen Coates)
 ((clare.jim@thomsonreuters.com;))