(Bloomberg) — China Evergrande Group, the real estate giant whose default two years ago accelerated a broader property debt crisis in the country, sought Chapter 15 bankruptcy protection in New York on Thursday.
Most Read from Bloomberg
The move protects it from creditors in the US while it works on a restructuring deal elsewhere. The Chinese homebuilder’s Chapter 15 petition references restructuring proceedings being carried out in Hong Kong and the Cayman Islands.
International debt-restructuring deals sometimes require a Chapter 15 filing in the course of finalizing a transaction. Last year, Beijing-based developer Modern Land China Co. also filed for Chapter 15 bankruptcy after failing to repay a $250 million bond and saying it would go forward with an offshore debt restructuring deal.
Evergrande’s fate has broad implications for China’s $60 trillion financial system, and could send ripples across banks, trusts and millions of home owners, in what would be one of the…
2023-08-17 20:32:41
Original from finance.yahoo.com