China Evergrande’s EV arm drops after creditors seek bankruptcy proceedings for units

SHARES of China Evergrande New Energy Vehicle fell 7 per cent in Monday (Jul 29) morning trade after individual creditors of two of its units sought court approval for the units to go through bankruptcy proceedings and be reorganised.

The electric vehicle (EV) maker said its units Evergrande New Energy Vehicle (Guangdong) and Evergrande Smart Automotive (Guangdong) had received notice from a local court about the Jul 25 application.

“The above notice has a material impact on the production and operating activities of the company and the relevant subsidiaries,” the company said on Sunday.

The shares slid to HK$0.295 after initially making early gains.

Shares of China Evergrande New Energy Vehicle have dropped nearly 40 per cent so far this year. REUTERS