Burdened with a huge "mountain of debt", Evergrande officially filed for bankruptcy protection in the US

On August 17, Evergrande filed for bankruptcy protection in the US under Chapter 15 of the country's bankruptcy law.

Evergrande has $330 billion in financial obligations. (Source: Nikkei Asia)

In a bankruptcy filing in Manhattan bankruptcy court, Evergrande said it wanted recognition of ongoing restructuring negotiations in Hong Kong, the Cayman Islands and the British Virgin Islands.

Previously, China Evergrande's stock trading was suspended in March 2022.

Chapter 15 bankruptcy gives foreign creditors the right to participate in U.S. bankruptcies and prohibits discrimination against those foreign creditors.

Evergrande has $330 billion in financial obligations.

Creditors could vote on the restructuring plan this month, with courts in Hong Kong and the British Virgin Islands likely to approve it in the first week of September, the company said.

Evergrande has proposed a Chapter 15 bankruptcy hearing on September 20.

Last month, Evergrande reported a combined loss of $81 billion in 2021 and 2022, raising investor concerns about the feasibility of a debt restructuring plan the group proposed in March.

The company reported that the large loss was largely due to a payout to shareholders in 2022 of nearly 106 billion yuan, following an additional loss of 476 billion yuan the previous year.

The results show how Evergrande has struggled in China's property market crisis.

Since the real estate debt crisis broke out in mid-2021, many real estate companies in China have defaulted on their debts. Recently, Country Garden, a major private real estate developer in China, has also caused concern among investors when the company was forced to miss a bond interest payment.

Source: https://baoquocte.vn/ganh-nui-no-khong-lo-evergrande-chinh-thuc-nop-don-bao-ho-pha-san-tai-my-238826.html