Chinese real estate giant Evergrande has filed for bankruptcy in a New York court. He brings it back there Cnn. The company, once the second largest in the sector in China by turnover, went into insolvency in 2021 due to heavy debt, sending the entire real estate market of the Asian giant into a crisis.
Evergrande has filed for Chapter 15 bankruptcy protection, which allows a U.S. bankruptcy court to grant recognition to an insolvency or debt restructuring proceeding involving foreign countries.
Chapter 15 gives foreign creditors the right to participate in declared U.S. bankruptcy cases and prohibits discrimination against such foreign creditors.
Last month, Evergrande reported that it lost $81 billion in capital in 2021 and 2022, according to a filing on the stock exchange. The document also revealed that Evergrande’s total debts had reached 2.437 trillion yuan ($340 billion) by the end of last year, or about 2 percent of China’s entire gross domestic product.
In March of this year, Evergrande unveiled a multibillion-dollar restructuring plan to repay its international creditors. The company had more than $270 billion in total liabilities, making the restructuring plan the largest ever in China.
2023-08-18 01:44:24
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