The last few days have seen a lot of drama for Evergrande Auto (HK 0708). The company stopped making payments to suppliers and employees. The share price developed accordingly and recorded high, double-digit losses. On Friday the stock was trading at just HK $ 2,23. Miles away from the price a year ago which was HK $ 72,45. Is it now over with the big plans of the Evergrande Group? Not quite yet, all possibilities are being exhausted, as reports in the Chinese media show.
Stock options for employees
The situation is dire, but the Evergrande Group is trying to save the investment in the mobility business. In doing so, she re-enacts Setting of payments to suppliers and employees, a desperate game. According to reports in Chinese media, Evergande Auto is offering 3.180 employees stock options to encourage them to stay. 323 million share certificates are available, redeemable from March 20.03.2022, 3,90 at a price of HK $ XNUMX per share.
A daring bet on an uncertain future. It is completely open whether the employees will accept the offer.
Time is running out (China)
On Friday, the Chinese media published a statement from Evergrande Auto, which draws attention to a timing problem. In order to continue operating Evergrande Auto, the company needs fresh financial resources. Without their inflow, all projects, the payment of outstanding salaries and the start of production are not secured.
The impending end of Evergrande Auto and Hengchi would be the third spectacular departure of a Chinese car brand after Byton and Bordrin.
Time is running out (Sweden)
Depending on how the further development in China will be, it will affect the future of Trollhättan. There the management is resisting the possible end of the company. A possible sale or the entry of an investor would be endangered by the bankruptcy of the Evergrande Group. Creditors could try to secure and realize the European assets like NEVS or Protean. An orderly transition would be very difficult to achieve under these circumstances.
The pressure on the management of NEVS is therefore increasing, time is running faster in Sweden than those involved would like. The future of NEVS hangs by a thread.