China Evergrande, the most indebted Chinese real estate developer in the world and who has become the symbol of the crisis in the sector in the Dragon, has filed for bankruptcy and sought protection from creditors in a court in Manhattan. The company invoked Chapter 15 of the US Bankruptcy Code, which protects non-US companies undergoing restructuring from creditors hoping to sue or freeze assets in the United States.
Evergrande seeks recognition of ongoing restructuring talks in Hong Kong, the Cayman Islands and the British Virgin Islands. His move comes amid growing fears that problems in China’s real estate sector could spread to other parts of the country’s economy as GDP growth slows. Since the industry’s debt crisis began in mid-2021, companies accounting for 40% of Chinese home sales have gone bankrupt. The health of Country Garden, China’s largest private property developer, is also worrying investors after the company failed to pay some interest this month. Evergrande recently had $330 billion in liabilities.
2023-08-18 00:44:02
#Chinese #real #estate #giant #Evergrande #files #bankruptcy #fears #domino #effect
