Investor files liquidation petition in China against Evergrande unit (updated)

China Evergrande New Energy Vehicle

07/08/2024 08:10

(Adds Evergrande request for comment in paragraph 4 and context
from paragraph 5)
    By Xie Yu
       HONG KONG, Aug 7 (Reuters) - An investor has filed a
petition to a court in China to liquidate a major unit of the
heavily indebted property developer China Evergrande  3333.HK ,
according to a stock filing by the petitioner on Wednesday.
    The investor - Vanward  002543.SS , a Shenzhen-listed
electric appliance manufacturer - cited a dispute with the
Evergrande unit Guangzhou Kailong Real Estate over an investment
worth 200 million yuan ($27.9 million).
    A court in the southern Chinese city of Guangzhou is
reviewing the case, the filing said.
    Evergrande did not immediately respond to a request for
comment from Reuters.
    Kailong is a key unit of Evergrande. It controls a 60.3%
stake of Hengda Real Estate, Evergrande's flagship property
entity in mainland China, business registry database Qichacha
showed.
    Vanward won an arbitrary ruling in Shenzhen in December 2022
that called on Kailong to return the investment with interest
accrued and legal costs. Kaikong has yet to comply, Vanward said
in the filing.
    On Monday, Evergrande's electric vehicle unit said a Chinese
court had ruled that two of its subsidiaries must enter
bankruptcy and be reorganised.
    In January, a Hong Kong court ordered Evergrande, once
China's largest property developer, to be liquidated after
failing to provide a satisfactory restructuring plan for $23
billion in offshore debt.
    Overall, Evergrande has more than $300 billion in
liabilities.

 (Reporting by Xie Yu; Editing by Neil Fullick and Christopher
Cushing)
 ((Yu.Xie@thomsonreuters.com;))