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☆ Shareholders of Evergrande's EV unit agree on restructuring deal
▼ + stars: | 2023-05-13 | by ( Xie Yu | ) www.reuters.com time to read: +1 min

HONG KONG, May 13 (Reuters) - Shareholders of China Evergrande New Energy Vehicle Group (0708.HK) accepted a proposal to dispose of two subsidiaries in a restructuring, according to a filing with the Hong Kong stock exchange on Friday night. More than 50% of the votes under the EV company, a unit of embattled property developer China Evergrande (3333.HK), were cast at a Friday general meeting in favour of a proposal raised in late April, the filing said. The EV unit on April 25 announced the plan to sell two debt-laden companies to another unit under China Evergrande as part of the auto firm's restructuring. The EV unit was expected to book a $3.6 billion gain from the transfer, while the two companies to be sold held 47 property projects altogether, said a previous stock filing by the EV unit. The deal would help the EV unit focus on the new energy vehicle segment and could help improve its valuation and eventually "may help to attract investors to Evergrande Auto and raise funds", said a separate filing by the group company.

☆ Explainer: What's next for China Evergrande after restructuring proposal?
▼ + stars: | 2023-04-27 | by ( Clare Jim | ) www.reuters.com time to read: +5 min

HONG KONG, April 27 (Reuters) - China Evergrande Group (3333.HK) will get a signal on Thursday of the level of creditor backing for its offshore debt restructuring proposal, with investors to be given an incentive for early support. While some major creditors have already agreed to support the restructuring proposal, others are eager to cut ties with the debt-laden property developer and move on. WHAT DOES THE OFFSHORE DEBT RESTRUCTURING PROPOSAL OFFER? The equity-linked instruments will be backed by the group and its two Hong Kong-listed companies, Evergrande Property Services Group (6666.HK) and Evergrande New Energy Vehicle Group (0708.HK). Evergrande established a risk-management committee in December 2021 that included officials from state companies to assist in its debt and asset restructuring.

☆ China Evergrande's EV unit warns it may halt production amid funds shortage
▼ + stars: | 2023-03-23 | by ( ) www.reuters.com time to read: +2 min

The EV manufacturing unit of the embattled developer China Evergrande Group (3333.HK) said it was aiming to cut costs through measures such as reducing staff numbers and improving management efficiency. "In face of the inability to obtain additional liquidity, the Group is at risk of discontinuing production," it said. Under that plan, the cumulative unleveraged cash flow from 2023 to 2026 was expected to reach negative 7 billion yuan to a negative 5 billion yuan. The news comes after its parent, China Evergrande Group, on Wednesday announced plans for the restructuring of its $22.7 billion in offshore debt, which could set a template for distressed rivals in the country's property sector. The EV unit is key for the transformation plans of Evergrande, once China's top-selling property developer and now at the center of a deepening debt crisis.

☆ China Evergrande's electric vehicle unit warns it may halt production amid funds shortage
▼ + stars: | 2023-03-23 | by ( ) www.cnbc.com time to read: 1 min

China Evergrande New Energy Vehicle Group said on Thursday it may have to halt production of electric vehicles if it could not obtain fresh funding, after delivering more than 900 units of its flagship Hengchi 5 model. The EV manufacturing unit of the embattled developer China Evergrande Group said it was aiming to cut costs through measures such as reducing staff numbers and improving management efficiency. "In face of the inability to obtain additional liquidity, the Group is at risk of discontinuing production," it said. If, however, it could obtain financing of more than 29 billion yuan ($4.2 billion) "in the future," it aimed to launch a number of flagship models and hoped to achieve mass production, the company said in a statement. Under that plan, the cumulative unleveraged cash flow from 2023 to 2026 was expected to reach negative 7 billion yuan to a negative 5 billion yuan.

Its offshore debt restructuring, the country's biggest such exercise, is aimed at saving it from a disorderly collapse. The developer has $22.7 billion of offshore debt, all of which is deemed to be in default. A dollar bondholder, who was not authorised to speak to media, likened the debt restructuring plan to lending a bucket of rice to someone and being repaid with two grains a year. Evergrande said on Wednesday that additional financing of 250 billion yuan ($36.65 billion) to 300 billion yuan would be required as it resumes operations over the next three years. If Evergrande fails to push ahead with restructuring plan, the developer may have to face liquidation proceedings filed by an investor in one of its units in a Hong Kong court.

HONG KONG, March 22 (Reuters) - China Evergrande Group (3333.HK) on Wednesday announced plans for the restructuring of its $22.7 billion in offshore debt, which could set a template for distressed rivals and shape investor sentiment on the country's embattled property sector. The world's most indebted property developer gave creditors a basket of options to swap their debt into new bonds and equity-linked instruments tied to two Hong Kong-listed companies, Evergrande Property Services Group (6666.HK) and Evergrande New Energy Vehicle Group (0708.HK). With more than $300 billion in total liabilities including offshore debt, Evergrande has been at the centre of a property debt crisis in which multiple Chinese developers defaulted over the past year, forcing many to enter debt restructuring talks. "The proposed restructuring will alleviate the company's pressure of offshore indebtedness and facilitate the company's efforts to resume operations and resolve issues on shore," Evergrande said in the filing. Evergrande, which began one of China's biggest debt restructuring processes early last year, said on Monday that a key bondholder group had agreed to its proposed terms.

☆ China Evergrande set to unveil offshore debt restructuring proposal
▼ + stars: | 2023-03-22 | by ( ) www.reuters.com time to read: +2 min

HONG KONG, March 22 (Reuters) - China Evergrande Group (3333.HK) is set to unveil on Wednesday a restructuring proposal for its $22.7 billion offshore debt that could set the template for distressed peers and shape investor sentiment towards the country's embattled property sector. Two people with knowledge of the proposal said it would give creditors a basket of options to swap their debt into new bonds with extended maturity and equity in Evergrande's two Hong Kong-listed units - Evergrande Property Services Group (6666.HK) and Evergrande New Energy Vehicle Group (0708.HK). Evergrande, once China's top-selling developer but now the world's most indebted property developer, declined to comment. With more than $300 billion in total liabilities including offshore debt, Evergrande has been at the centre of a property debt crisis in which multiple Chinese developers defaulted over the past year, forcing many to enter debt restructuring talks. Evergrande, which began one of China's biggest debt restructuring processes early last year, said on Monday that a key bondholder group had agreed to its proposed terms and that it plans to publish the details on Wednesday.

HONG KONG, March 20 (Reuters) - Embattled developer China Evergrande Group (3333.HK) plans to publish on Wednesday an offshore debt restructuring term sheet agreed with a key offshore bondholder group, the firm's lawyer told a Hong Kong court. The step paves the way for the world's most indebted property developer to restructure offshore debt of $22.7 billion, as part of liabilities of more than $300 billion. Once China's top-selling developer, Evergrande has been at the centre of a property debt crisis in which multiple developers defaulted on offshore debt obligations over the past few years, forcing many to enter into debt restructuring talks. The two units are Evergrande Property Services Group (6666.HK) and Evergrande New Energy Vehicle Group (0708.HK). In a court hearing last November, Evergrande said it aimed to win creditors' approval for its debt restructuring proposals by the end of February.

☆ China Evergrande to unveil debt restructure details on Wednesday
▼ + stars: | 2023-03-20 | by ( ) www.reuters.com time to read: +2 min

HONG KONG, March 20 (Reuters) - Embattled developer China Evergrande Group (3333.HK) plans to publish an offshore debt restructuring term sheet on Wednesday, aiming to sign an agreement with creditors by month-end, it told a Hong Kong court. With more than $300 billion in liabilities, including the offshore debt, Evergrande began one of China's biggest debt restructuring processes early last year. Once China's top-selling developer, Evergrande has been at the centre of a property debt crisis in which multiple developers defaulted on offshore debt obligations over the past few years, forcing many to enter into debt restructuring talks. The two units are Evergrande Property Services Group (6666.HK) and Evergrande New Energy Vehicle Group (0708.HK). In a court hearing last November, Evergrande said it aimed to win creditors' approval for its debt restructuring proposals by the end of February.

HONG KONG, March 9 (Reuters) - China Evergrande Group (3333.HK) is aiming to unveil some debt restructuring terms before the next winding-up court hearing on March 20 in order to seek another adjournment, two sources with knowledge of the matter told Reuters. Once China's top-selling developer, Evergrande has been at the centre of a property debt crisis that has seen multiple developers default on offshore debt obligations over the past years, forcing many to enter into debt restructuring talks. Evergrande is due to appear in a Hong Kong court on March 20 for hearing on a winding up petition filed by a creditor. The developer told the court at that time it aimed to win creditors' approval for its debt restructuring proposals by as early as the end of February. Reporting by Clare Jim and Xie Yu in Hong Kong; Editing by Sumeet Chatterjee and Sonali PaulOur Standards: The Thomson Reuters Trust Principles.

☆ Evergrande said to propose two offshore restructuring options- Bloomberg News
▼ + stars: | 2023-01-17 | by ( ) www.reuters.com time to read: +1 min

Jan 17 (Reuters) - Embattled property developer China Evergrande Group (3333.HK) has been discussing a restructuring proposal with creditors that includes two options for extending payment deadlines on unsecured offshore debt, Bloomberg News reported on Tuesday. The second proposal seeks creditors to swap part of their debt into shares in Evergrande and its auto and property-management units - China Evergrande New Energy Vehicle Group Ltd (0708.HK) and Evergrande Property Services Group Ltd (6666.HK) - by issuing new hybrid securities like convertible bonds, according to the report. For the second proposal, too, the maturities would be extended through installment plans, but for a shorter period with coupons set at around 6% to 7%, the report added. Once China's top-selling developer, Evergrande is now at the centre of the country's property crisis, saddled with over $300 billion in liabilities amid a debt restructuring. Reporting by Akanksha Khushi in Bengaluru; Editing by Uttaresh.V and Dhanya Ann ThoppilOur Standards: The Thomson Reuters Trust Principles.

☆ China Evergrande auto unit to lay off 10% of workers -source
▼ + stars: | 2022-12-02 | by ( ) www.reuters.com time to read: 1 min

SHANGHAI, Dec 2 (Reuters) - China Evergrande Group's (3333.HK) electric vehicle unit plans to lay off 10% of its workers, a source familiar with the matter said on Friday. The company, China Evergrande New Energy Vehicle Group Ltd (0708.HK) also plans to suspend salary payments to 25% of its workers for between one and three months, the source said. The EV unit is key for Evergrande, once China's top-selling developer and now at the centre of the country's property crisis. Chairman Hui Ka Yan has vowed to shift the group's primary business within 10 years from real estate to the automobile venture, which has itself struggled for capital. Reporting by Shanghai Newsroom; Editing by Tom HogueOur Standards: The Thomson Reuters Trust Principles.

☆ Evergrande's EV unit suspends mass production due to lack of orders -sources
▼ + stars: | 2022-12-02 | by ( ) www.reuters.com time to read: +2 min

SHANGHAI, Dec 2 (Reuters) - China Evergrande Group's electric vehicle unit has suspended mass production of its only model due to a lack of new orders, two people with knowledge of the matter said, in the latest set of troubles facing the indebted property developer. China Evergrande New Energy Vehicle Group (0708.HK) said in mid-September that it had started mass production of the Hengchi 5 model at a plant in the northern city of Tianjin and in late October said it had delivered its first 100 cars. It was not immediately clear how long mass production would stay suspended for. In July，the unit said it had received non-binding pre-orders for more than 37,000 units of the Hengchi 5. Competition in the EV sector has also been intensifying, with Tesla cutting prices and offering incentives in China, weighing on other loss-making competitors.

☆ China's Evergrande delivers first electric vehicles
▼ + stars: | 2022-10-29 | by ( ) www.reuters.com time to read: +1 min

[1/2] A view of the electric vehicle (EV) factory of China Evergrande New Energy Vehicle Group in Tianjin, China October 20, 2021. REUTERS/Yilei SunBEIJING, Oct 29 (Reuters) - China Evergrande New Energy Vehicle Group Ltd (0708.HK) has started deliveries of its Hengchi 5 electric vehicle, with the first 100 customers getting their cars on Saturday, it said on its official Wechat account. The company, a unit of heavily indebted property developer China Evergrande Group (3333.HK), launched production of the vehicle at a plant in the northern city of Tianjin last month. Evergrande is aiming to shift the group's primary business from real estate to the automobile venture over the next decade, with plans to make 1 million vehicles by 2025. ($1 = 7.2499 Chinese yuan renminbi)Reporting by Jenny Wang and Dominique Patton; Editing by Robert BirselOur Standards: The Thomson Reuters Trust Principles.

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