China property developer Evergrande files for bankruptcy protection in US

on Aug18
by | Comments Off on China property developer Evergrande files for bankruptcy protection in US |

A residential complex constructed by Evergrande in Huai’an, Jiangsu, China, on July 20, 2023.

Future Publishing | Future Publishing | Getty Images

China’s heavily indebted property giant Evergrande Group on Thursday filed for Chapter 15 bankruptcy protection in a U.S. court.

In a filing to the Manhattan bankruptcy court, the firm referenced restructuring proceedings in Hong Kong, the Cayman Islands and the British Virgin Islands.

CNBC has reached out to Evergrande for comment but did not hear back.

The world’s most indebted property developer defaulted in 2021 and announced an offshore debt restructuring program in March. Trading of Evergrande shares have been suspended since March 2022.

The Chapter 15 bankruptcy protection allows a U.S. bankruptcy court to intervene in cross-border insolvency case involving foreign companies that are undergoing restructuring from creditors. It aims to protect the debtors’ assets and facilitate the rescue of businesses that are in financial trouble.

Tianji Holdings, an affiliate of Evergrande, and its subsidiary Scenery Journey, also filed for Chapter 15 protection in a Manhattan bankruptcy court, according to the filing.

Property sector fallout

Chinese property giant Evergrande has a huge debt problem – here's why you should care

Previous postBitcoin abruptly tumbles as much as 9% to just over $26,000 late Thursday Next postSea's growth pivot at expense of profits stems from e-commerce competition

Los Angeles Financial times

Copyright © 2024 Los Angeles Financial times

Updates via RSS
or Email