August 18, 2023
2 mins read

Chinese property giant Evergrande files for bankruptcy in US

Evergrande filed for Chapter 15 bankruptcy protection, which allows a US bankruptcy court to step in when an involvency case involves another country….reports Asian Lite News

China’s Evergrande Group — once the country’s second-largest property developer — on Thursday submitted a bankruptcy petition in New York, CNN reported.

The beleaguered firm, which faced significant debt and defaulted on its financial obligations in 2021, sparking a massive property crisis in the Chinese economy, is still grappling with the repercussions.

Evergrande filed for Chapter 15 bankruptcy protection, which allows a US bankruptcy court to step in when an involvency case involves another country. Chapter 15 bankruptcy is intended to help promote cooperation between US courts, debtors, and other countries’ courts involved in cross-border bankruptcy proceedings, as per CNN.

According to CNN, Evergrande did not immediately respond to its request for comment.

Pic credits IANS

Meanwhile, the property developer has struggled to pay off its loans, which reached 2.437 trillion yuan (340 Billion USD) by the end of last year — or roughly 2 per cent of China’s entire gross domestic product (GDP).

The company also reported in a stock market filing last month that it had lost 81 Billion USD of shareholder money in 2021 and 2022.

Evergrande’s 2021 default set off a larger crisis in China’s property market, damaging homeowners and the broader financial system in the country. Since Evergrande’s collapse, several other major developers in China, including Kasia, Fantasia, and Shimao Group, have defaulted on their debts. Most recently, another Chinese real estate giant, Country Garden, warned that it would “consider adopting various debt management measures” — fuelling speculation that the company may be preparing to restructure its debt as it struggles to raise cash, CNN reported.

Earlier this year, Evergrande unveiled its long-awaited debt restructuring plan, which was China’s largest on record. The company said it had reached “binding agreements” with its international bondholders on the key terms of the plan.

“The proposed restructuring will alleviate the company’s pressure of offshore indebtedness and facilitate the company’s efforts to resume operations and resolve issues on shore,” CNN quoted Evergrande as saying. (ANI)

ALSO READ: TikTok: China’s disinformation tool?

Previous Story

PTI to challenge delimitation decision in apex court

Next Story

J&K film industry Soars, Guv commends over 300 productions

Latest from -Top News

Tehran Raps G7 For backing Israel

Baqaei claimed that Israel has launched an unprovoked war of aggression against Iran and attacked its nuclear sites in violation of Article 2(4) of the UN Charter…reports Asian Lite News Iranian Foreign

Crackdown in Balochistan Draws Global Outrage

Despite repeated denials from Islamabad, rights watchdogs and political activists say the pattern of abuses reflects a systemic campaign to silence the Baloch voice….reports Asian Lite News Human rights organisations have renewed

‘Killer’ Chants as Munir Visits US Event

Videos of the protest against Munir have surfaced on social media. Overseas Pakistanis staged a protest during the US visit of Pakistan’s Chief of Army Staff, Field Marshal Asim Munir, shouting slogans

Trump Slams Macron Over G7 Exit Claim

Trump clarified that his early departure from the summit had no connection with the ongoing Israel-Iran conflict….reports Asian Lite News US President Donald Trump on Tuesday lashed out at French President Emmanuel

G7 Sides with Israel in Escalating Conflict

The leaders said “Iran is the principal source of regional instability and terror.”…reports Asian Lite News Leaders of the G7 nations, meeting at a summit in Canada, issued a joint statement backing
Go toTop

Don't Miss

China calls BRICS a positive, stable force

Prime Minister Narendra Modi, Chinese President Xi Jinping along with

‘Rafah operation would be mistake’

Biden was caught on a hot mic moment recently saying