Evergrande EV unit set for USD 3.6 bn gain from liability transfer – EQ Mag

Struggling Chinese real estate conglomerate China Evergrande Group (OTC:EGRNF) said its electric vehicle unit will record a gain of about 24.79B yuan (US$3.59B) from transferring two companies to another group unit as part of a massive restructuring plan.

The $3.59B gain will come to fruition after the sale of the entire issued share capital of its Flaming Ace and Assemble Guard businesses to investment company Anxin Holding for an initial consideration of two yuan, according to the terms of the deal announced in a Monday filing.

Assemble Guard and Flaming Ace together hold 47 health and living projects of Evergrande Auto. The liability transfer, the parent company said, “may help to attract investors to Evergrande Auto and raise funds.”

last month, Evergrande proposed a $22.7B restructuring of offshore debt that gave creditors a number of options for converting their debt into new bonds with extended maturity and equity in the company’s two Hong-Kong listed subsidiaries — Evergrande Property Services Group and Evergrande New Energy Vehicle Group.

Source: PTI