2023-08-18 07:44:25
A building complex of Evergrande in the Chinese capital Beijing. Image: AFP
Evergrande’s crisis reaches a new stage. The Chinese project developer, which is in debt with 72 billion euros, is filing for bankruptcy protection in America. This is to gain time.
Heavily indebted Chinese real estate developer China Evergrande has filed for Chapter 15 bankruptcy protection in the United States. That emerges from documents of the bankruptcy court in Manhattan from Thursday. Under Chapter 15 of the US bankruptcy law, foreign companies can be protected from lawsuits by American creditors while they reorganize in another country. China Evergrande has accumulated a loss of around 72 billion euros within two years and is struggling with its creditors to reduce its debt mountain.
The company, which has a debt of 2.4 trillion yuan (equivalent to 300 billion euros) – no other real estate company in the world has accumulated more debt – got into trouble after the real estate bubble burst, but was able to avoid a disorderly collapse. The consequences of the crisis of the former star on the Chinese housing market are numerous building ruins and bankruptcies. In March, the company had proposed debt restructuring to creditors at home and abroad. China Evergrande shares have been suspended from trading in Hong Kong for more than a year amid numerous investigations.
Hendrik Ankenbrand Published/Updated: , Recommendations: 18
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