Evergrande EV Unit’s Liquidators Continue Discussions with Potential Stake Buyers, Reports Reuters

Liquidators of the electric vehicle division of the financially troubled China Evergrande Group are currently in discussions with a potential buyer regarding a stake in the company. The purpose of this potential investment is to secure a new credit line to bolster production efforts.

Initially, the electric vehicle manufacturer set ambitious goals to compete with Tesla and even achieved a market valuation that surpassed that of Ford Motor Company. However, these aspirations have been significantly hindered by the ongoing debt crisis affecting its parent company.

China Evergrande New Energy Vehicle stated on Thursday that its liquidators have not yet finalized any agreements with prospective buyers, nor have any deals been established to provide credit to the electric vehicle manufacturer.

According to a statement released in late May, the liquidators are considering a non-binding arrangement whereby a third-party buyer could acquire a 29% stake in the electric vehicle unit, with an option to take an additional 29.5% stake.

The company, which indicated in August that two of its subsidiaries had initiated bankruptcy proceedings, is experiencing a severe liquidity crisis and facing mounting pressure from creditors and local governmental authorities.