On January 11, 2022, the Shenzhen headquarters building of Evergrande Group in Shenzhen, Guangdong Province, China.
Liang Xiashun | Visual China Group | Getty Images
China Evergrande New Energy Vehicle A local court has ruled that two units of the company should enter bankruptcy and be reorganized, it said on Monday, a week after their individual creditors filed for bankruptcy proceedings.
On July 29, individual creditors of Evergrande New Energy Vehicles (Guangdong) and Evergrande Smart Vehicles (Guangdong) requested the court to approve the two companies to enter bankruptcy proceedings and reorganize. One day later, the electric vehicle manufacturer's share price plummeted 7%. .
The company said a local court held a hearing on August 2, and the court ordered each unit to enter such procedures.
Troubled property developer's electric vehicle arm China Evergrande Group It informed the market in May that its liquidators were in talks with potential buyers to take a stake in the company, raising the prospect of a new credit line for the company to support production.