Creditor files for liquidation of Evergrande NEV's unit

A creditor filed a petition for the bankruptcy of a unit of China Evergrande New Energy Vehicle Group, a subsidiary of China Evergrande Group, in a Shanghai court, the third such petition against the embattled car company.

Trading in NEV shares was suspended at 0152 GMT on Thursday, after the price dropped 5.4 per cent.

A new bankruptcy proceeding could add pressure on the liquidators of China Evergrande Group, the world's most indebted property developer, to recover debt for creditors and a potential investor in the electric vehicle company.

Zhejiang Chint Electrics filed a bankruptcy and liquidation petition against manufacturing unit Evergrande Hengchi New Energy Vehicle (Shanghai) Co in relation to an overdue and unpaid debt, according to a filing dated Sept. 4 by the No.3 Intermediate People's Court of Shanghai.

The court said it will hold a hearing on Sept. 18 to decide to accept the petition or not to start a bankruptcy proceeding.

Last month, a Guangzhou court ordered two other units - Evergrande New Energy Vehicle (Guangdong) and Evergrande Smart Automotive (Guangdong) - to enter into bankruptcy and reorganisation proceedings, a move that the EV parent warned would have "a material impact" on its production and operating activities.

Evergrande NEV last week announced a net loss of 20.3 billion yuan ($2.9 billion) in the first half, widening from a 6.9 billion net loss a year ago.

Its total liabilities rose 2.5 per cent from end-December to 74.4 billion yuan, while total assets decreased 53 per cent to 16.4 billion yuan and total cash plunged 69 per cent to 39 million yuan.

The company's auditor said the material uncertainties from the financial results may have significant impact on the group's ability to continue as a going concern.