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Evergrande misses payment to staff, factory suppliers: Report

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

September 24, 2021 / 10:30 IST
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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.

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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.