China Evergrande EV units' bankruptcy adds roadblock for liquidators

Case clouds sale of car group amid move to recover billions from developer's execs

Evergrande New Energy Vehicle test cars are parked outside its research center in Shanghai in October 2021. © Reuters

ECHO WONG, Nikkei staff writer

August 6, 2024 15:06 JST

Updated on August 6, 2024 17:34 JST

HONG KONG -- The electric vehicle arm of embattled Chinese property developer Evergrande revealed two months ago that it was in talks with a potential buyer. Now, units of the EV group face a bankruptcy process that some warn could dampen the appetite for a deal.

Two mainland units of China Evergrande New Energy Vehicle Group have entered into bankruptcy and reorganization proceedings, according to a filing on Monday. The move came after a court on Friday heard an application from individual creditors.