Friday night, China Evergrande New Energy Vehicle Group shareholders approved a proposal to sell two subsidiaries as part of a restructuring, according to a filing with the Hong Kong stock exchange.
At a general meeting held on Friday, more than fifty percent of ballots under the EV company, a subsidiary of troubled property developer China Evergrande, were cast in favor of a late-April proposal, according to a filing.
As part of the automaker’s restructuring, the EV unit on April 25 announced plans to sell two debt-ridden companies to another entity under China Evergrande.
According to a previous stock filing, the EV unit anticipated a $3.6 billion gain from the transition, while the two companies to be sold held 47 property developments in total.
Investors in Evergrande’s EV division have reached an agreement on a reorganization plan.
The transaction would allow the EV unit to concentrate on the new energy vehicle segment, increase its valuation, and “help Evergrande Auto attract investors and raise capital,” according to a separate filing by the group company.
China Evergrande disclosed in a separate disclosure on Friday that it had received an enforcement notice from a court in Guangzhou, covering the company, its controlling shareholder Hui Ka Yan, and its property development subsidiary.
In addition to other payment obligations including outstanding dividends, liquidated damages, and legal fees, Hui and Evergrande were required to fulfill a repurchase obligation of approximately 5 billion yuan ($700 million) following a deal dispute.