Evergrande misses payment to staff, factory suppliers: Report

China Evergrande

China Evergrande Group's electric vehicles (EV) unit has not made the latest payments to some of its employees and suppliers for factory equipment.

For some mid-level managers, the second installment of monthly payments, which was due on September 20, has not arrived, Bloomberg has reported.

Many equipment suppliers had begun withdrawing their on-site personnel from the Shanghai and Guangzhou sites as early as July after payments for machinery in Evergrande New Energy Vehicle Group's (NEV) factories were not made.

The means that Evegrande NEV might miss  its mass delivery targets next year, given that trial production of EVs at its factories in Shanghai and Guangzhou has been dialled back.

Moneycontrol could not independently verify the story.

Representatives for Evergrande NEV had not yet responded when contacted by Bloomberg.

Evergrande has run short of cash to service its debt of $300 billion.

Last week Evergrande appointed financial advisers and warned of default. At its offices, furious small investors have protested to try and retrieve life savings sunk into its properties and wealth-management products.

Evergrande has promised to prioritise them and also resolved one coupon payment on a domestic bond this week. But it has said nothing about an $83.5 million offshore interest payment that was due on Thursday or a $47.5 million payment due next week.

(With inputs from Reuters)