In a latest announcement on April 7th, Evergrande Auto's official statement declares the termination of Neumann Group's strategic investment. The company's previously proposed transaction and the revision of terms for debt-to-equity swaps have yet to make any further progress.
According to previous announcements, the main contents of the share subscription agreement of Newton Group are as follows: Newton Group will implement a strategic investment of approximately $500 million in Evergrande Auto and provide a transitional fund of 600 million CNY.
The main content of the debt-to-equity swap agreement is: Evergrande Group, Xu Jiayin and other creditors will offset Evergrande Auto's outstanding debt of HK$20.895 billion by subscribing to new shares of Evergrande Auto.
This investment was once seen as a "lifesaver" for Evergrande Auto, but now it seems that its failure is already a foregone conclusion.
According to financial reports, as of December 31, 2023, Evergrande Auto's accumulated losses and shareholders' losses amounted to ¥110.841 billion (compared to ¥98.906 billion in 2022) and ¥37.693 billion (compared to ¥68.651 billion in 2022), respectively. The cash and cash equivalents as of December 31, 2023, were ¥129 million (compared to ¥220 million in 2022).
Evergrande Auto stated that due to financial constraints, the group has arranged for some staff to take leave, and production at the Tianjin factory has been temporarily suspended.
