Awani Review

Complete News World

Evergrande files for bankruptcy in the United States

Evergrande files for bankruptcy in the United States

(New York) Indebted Chinese real estate giant Evergrande on Thursday asked to be placed in the United States under bankruptcy proceedings according to court documents, a measure intended to protect its American assets, while a deal was found to restructure its debt.

The US measure, known as Chapter 15, is intended to provide mechanisms for managing insolvencies involving more than one country.

The private Evergrande Group found itself in trouble in 2021, with massive debts exceeding $300 billion, when the Chinese authorities tightened their control over the real estate sector.

Evergrande soon became a symbol of the crisis in China’s private real estate sector, which still faces great difficulty, as builders find themselves unable to complete their projects, and face multiplying legal proceedings and rejection from landlords. .

For several months, the group has been working on a project to restructure its debt, and submitted a proposal in that direction earlier this year.

The promoter indicated that he was proposing to his creditors in particular to replace the debt with new bonds and a stake in two subsidiaries, including its ambitious electric car subsidiary.

The difficulties of the former first place in the real estate sector raised fears in 2021 of its collapse and the risk of infection, which makes the second economic power in the world tremble.

According to the latest court documents submitted, the ongoing restructuring proceedings are under way in Hong Kong.

In July, the Evergrande Group reported a net loss of more than $113 billion for 2021 and 2022.

See also  Megabus will compensate for the Greyhound shutdown by improving service

Beijing recently unveiled measures to revive its vital real estate sector, including providing credit support and cutting red tape.