China’s Evergrande files for bankruptcy – Kommersant
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Evergrande Group, one of China’s largest property development companies, has filed for bankruptcy in a court in New York, reports Bloomberg. Under Chapter 15 bankruptcy law in the US, the filing should allow the company to protect its local assets from creditors while it works on a restructuring deal in other countries. The document mentions, in particular, the restructuring procedures in Hong Kong and the Cayman Islands.
Evergrande has been in financial trouble since September 2021. In December of that year, the company suffered a technical default after two consecutive loan defaults. Then its debt was estimated at $ 305 billion, and the developer had to sell some assets due to the threat of bankruptcy. April 2023 Evergrande agreed with a group of foreign creditors on debt restructuring. Total losses of the developer in 2021–2022 amounted to $81 billion
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