China’s Most Indebted Property Developer, China Evergrande Group EGRNF, has Filed For Chapter 15 Bankruptcy Protection In A U.S. Court.
According to Reuters, the filing occurred on Thursday, August 17. The company, facing a severe debt crisis, sought protection under Chapter 15 of the U.S. bankruptcy code. This shields non-U.S. companies undergoing restructuring from creditors who aim to sue or tie up assets within the U.S.
See Also: China’s Central Bank Takes Surprising Step As Economy Falters: Why Americans Should Care
China Evergrande’s affiliate, Tianji Holdings, also filed for Chapter 15 protection in the Manhattan bankruptcy court. This move comes amid growing concerns that China’s property sector crisis could impact other areas of the country’s slowing economy.
Evergrande, which recently had liabilities of $330 billion, is seeking recognition of restructuring talks happening in Hong Kong, the Cayman Islands, and the British Virgin Islands. The company’s shares were suspended from trading in March 2022.
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