WionDrive News Desk 
China’s Evergrande New Energy Vehicle has announced that one of its subsidiaries received an official notification from the Chinese authorities of a certain administration region. The notice requires the defendant to pay an amount of 1.9 billion yuan (USD 262.42 million) given to it in the form of subsidies.
In a statement, the electric vehicle (EV) business wing of China Evergrande said that the local authorities have demanded to dissolve some of the investment cooperation deals with Evergrande Automobile Holdings since 29th April 2019.
The statement goes further to express the danger of that action by saying, “The above demands of the letter if implemented, could have a material adverse effect on the financial condition and results of operations of the Company or each of the subsidiaries.”
The latest of these measures comes fist with the backdrop of China Evergrande’s existing financial troubles. Earlier this year, the company which ranks among the world’s most leveraged property developers faced an order for it to be liquidated based on its inability to offer a sustainable restructuring plan. This decision came more than two years after the company first failed to meet its offshore obligations and later faced court processes.
Due to the company’s financial woes, China Evergrande had earlier said that it would cease trading its shares and this decision was still effective up to the present. These new demands from local authorities only add to the escalating issues confronting the troubled conglomerate, as critics question its further sustainability in terms of balance and revenue generation.
