Three months after receiving approval to start selling vehicles, Evergrande’s electric vehicle unit now has its assets seized to compensate lenders for a surprisingly small sum of money.
On June 20, auto column Daoge Talks About Cars reported that a Chinese court issued three foreclosure orders from Evergrande New Energy Vehicle Group Limited. One of which was only for 17 yuan, or roughly 2.5 dollars.
The orders were filed by the Tianjin Binhai New District Court on June 17.
Business data search platform Tianyancha showed that the three foreclose orders totaled 34,314 yuan or around 5,100 dollars. By far, however, the unit has had more than 360 million yuan, or more than 53 million dollars worth of assets confiscated.
Daoge Talks About Cars noted that the electric vehicle unit has been the last hope for China Evergrande Group, which is shouldering 300 billion dollars of total liabilities. Among the 9 pure electric SUV models that the company introduced, Hengchi 5 has already been mass-produced. According to Nikkei Asia, the SUV was approved for sale this March.
Likewise, foreclosure orders have been issued occasionally on China Evergrande Group and its affiliates this year.
On February 24, became the first to have its assets seized. At the time, it was the Guangzhou Intermediate Court that issued the order, and the repayment was going to Zhiche Youxing Technology (Shanghai) Company Limited. According to Tianyancha, the sum reinforced was more than 95 million yuan, 14 million dollars.
It will not be until the end of July that the ailing Chinese real estate developer announces its restructuring proposal to creditors.