Evergrande goes bankrupt… again
This time in USA
Chinese real estate giant Evergrande has filed for bankruptcy in the United States, according to court documents. The heavily indebted company is seeking to protect its American assets while working on a debt restructuring agreement.
The American bankruptcy procedure that Evergrande is invoking is known as Chapter 15. This procedure is designed to provide mechanisms for the management of insolvency cases involving more than one country, as is the case with Evergrande.
The private conglomerate Evergrande ran into trouble in 2021 when Chinese authorities tightened their control over the real estate sector. The company is burdened with a debt of over 300 billion dollars. On Thursday, Tianji Holdings, a subsidiary of Evergrande, also invoked Chapter 15.