Creditor files for liquidation of Evergrande NEV unit (updated)

China Evergrande New Energy Vehicle

05/09/2024 11:14

(Adds company filing)
    By Clare Jim
       HONG KONG, Sept 5 (Reuters) - A creditor filed a
petition for the bankruptcy of a unit of China Evergrande New
Energy Vehicle (NEV) Group  0708.HK  in a Shanghai court, the
third such petition against the embattled car company.    
    A new bankruptcy proceeding could add pressure on the
liquidators of parent firm China Evergrande Group  3333.HK , the
world's most indebted property developer, to recover debt for
creditors and secure a potential investor in its EV unit.
    Zhejiang Chint Electrics  601877.SS  filed a bankruptcy and
liquidation petition against manufacturing unit Evergrande
Hengchi New Energy Vehicle (Shanghai) Co over an overdue unpaid
debt, a filing dated Sept. 4 by the No.3 Intermediate People's
Court of Shanghai showed.
    The court said it will hold a hearing on Sept. 18 to decide
whether it will accept the petition to start a bankruptcy
proceeding. 
    Evergrande NEV said in a filing on Thursday evening it has
received a relevant notice issued by the court, but the impact
would be small. It added it is considering defending against the
application from the creditor.
    "The production and operating activities of the relevant
subsidiary are at a very low level at the current stage.
Therefore, the notice does not have a material impact on the
production and operating activities of the group," it said. 
    Trading in NEV shares was suspended at 0152 GMT on Thursday,
after the price fell 5.4%. The company said it has applied to
have trading resume on Friday.
    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 earlier. 
    Its total liabilities rose 2.5% from end-December to 74.4
billion yuan, while total assets fell 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 a 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 and Jason
Neely)
 ((clare.jim@thomsonreuters.com;))