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Evergrande EV Unit Says Subsidiaries Have Entered Bankruptcy Procedures
A shuttered showroom for China Evergrande New Energy Vehicle Group's Hengchi in Beijing.
Source: Bloomberg
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The electric vehicle arm of embattled property developer China Evergrande Group said Monday that two subsidiaries have started bankruptcy procedures, in the latest blow to the failing automaker.
China Evergrande New Energy Vehicle Group Ltd. said a court hearing held Aug. 2 ruled the subsidiaries have entered into bankruptcy and reorganization proceedings. This follows a July 28 filing that said creditors had applied to a local people’s court for the bankruptcy and reorganization of Evergrande New Energy Vehicle (Guangdong) Co. and Evergrande Smart Automotive (Guangdong) Co.