BEIJINGHONG KONG, Aug 15 Reuters China Evergrande New Energy Vehicle Group NEV shares jumped nearly 50 on Tuesday after the electric vehicle unit of cashstrapped property firm China Evergrande Group announced a 3.2 billion plan to reduce debt and stay afloat.

The plan unveiled late on Monday includes a new share sale worth nearly 500 million to Dubaibased mobility firm NWTN, which will take a 27.5 stake in Evergrande NEV.

The overall package also includes a debtforequity swap of HK20.89 billion 2.7 billion with its key creditors China Evergrande, its founder Hui Ka Yan, and his unit Xin Xin BVI Ltd, among others.

The NEV Group will face the risk of discontinuation of business without access to a new round of significant funding, Evergrande said in a statement.

It said the fresh funding from NWTN would help the automaker improve its financial performance, while the strategic investor would bring its business and operational support to the company.

Last month, Evergrande NEV posted its long overdue financial results and said a combined net loss for 2021 and 2022 amounted to nearly 10 billion.

The electric vehicle maker has been under pressure since its parent group descended into a debt crisis in mid2021, and warned in March it might have to wind up operations unless it obtained new funding.

Concerns about China39;s fragile property market have deepened this month, as the country39;s largest private real estate developer Country Garden missed coupon payments,…