Evergrande EV unit's liquidators still in talks with potential stake buyers (updated)

China Evergrande New Energy Vehicle

26/09/2024 16:22

(Updates with further details and background)
       Sept 26 (Reuters) - Liquidators of the electric vehicle
arm of debt-laden China Evergrande  3333.HK  are still in talks
with a potential buyer to take a stake in the company with a
view to provide a new credit line to support production. 
        In its initial days, the electric vehicle maker aimed to
take on Tesla  TSLA.O  and had a market valuation higher than
Ford Motor  F.N , but it has since been mired in the debt crisis
engulfing its property developer parent. 
    China Evergrande New Energy Vehicle  0708.HK  said on
Thursday its liquidators had not yet entered an agreement with
any potential stake buyer nor has there been any deal to extend
credit to the electric vehicle manufacturer. 
    The non-binding deal by liquidators acting for China
Evergrande Group, Evergrande Health Industry and Acelin Global
provides for a third-party buyer to take a stake of 29% in the
unit, with an option for 29.5% more, the EV arm had said in a
statement in late May. 
        The firm, which in August said two of its units had
commenced bankruptcy proceedings, has been severely short of
funds and has faced pressure from its creditors and a local
government. 

        
  

 (Reporting by Rishav Chatterjee in Bengaluru; Editing by Devika
Syamnath)
 ((Rishav.Chatterjee@thomsonreuters.com;))