China Evergrande seeks Chapter 15 protection in Manhattan bankruptcy court
China Evergrande seeks Chapter 15 protection in Manhattan bankruptcy court
China Evergrande , which is the world's most heavily indebted property developer and became the poster child for China's property crisis, on Thursday filed for protection from creditors in a U.S. bankruptcy court.
China Evergrande, which is the world's most heavily indebted property developer and became the poster child for China's property crisis, on Thursday filed for protection from creditors in a U.S. bankruptcy court.
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Evergrande's filing comes amid growing fears that problems in China's property sector could spread to other parts of the country's economy as growth slows.
The health of Country Garden (2007.HK), China's largest privately run developer, is also worrying investors after the company missed some interest payments this month.
Evergrande has said creditors may be able to vote this month on a restructuring, with possible approval by Hong Kong and British Virgin Islands courts in the first week of September.
Last month, Evergrande posted a combined $81 billion loss for 2021 and 2022, prompting investor worries about the viability of a debt restructuring plan it proposed in March.
On Monday, its electric-vehicle unit China Evergrande New Energy Vehicle Group (0708.HK) announced its own proposed restructuring.
That plan called for a $2.7 billion debt-for-equity swap, and a nearly $500 million share sale that would give Dubai-based automaker NWTN (NWTN.O) a 27.5% stake.
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The company sought protection under Chapter 15 of the U.S. bankruptcy code, which shields non-U.S. companies that are undergoing restructurings from creditors that hope to sue them or tie up assets in the United States.