Evergrande, a massive Chinese real estate company, files for bankruptcy protection
In 2021, it was discovered that Evergrande, previously China's biggest property developer, was suffering with more over $300 billion in liabilities. Evergrande was under a lot of strain as a result of regulators' increased monitoring of the real estate sector.
New York, New York, USA According to court filings, the troubled Chinese real estate behemoth Evergrande Group filed for bankruptcy protection in the US on Thursday. This action shields its US assets while it tries to reorganise.
In 2021, it was discovered that Evergrande, previously China's biggest property developer, was suffering with more over $300 billion in liabilities. Evergrande was under a lot of strain as a result of regulators' increased monitoring of the real estate sector.
The company's problems have come to represent the deepening crisis in China's expansive real estate market, which makes up a sizable percentage of the world's second largest economy and which many worry may spread internationally.
As the drama plays out, a number of significant developers have been hurt since they are unable to finish housing projects, which has led to protests and mortgage boycotts from homeowners.
Evergrande is the ultimate holding company for Tianji Holding and Scenery Journey, which recently filed for Chapter 15 protection in New York. Chapter 15 protection offers procedures for handling insolvency cases involving many nations.
Evergrande released a proposal early this year after months of work on an offshore debt restructuring deal.
The proposal gives debt holders the option to convert their outstanding debt into new company notes and stock in two of the business's subsidiaries, Evergrande Property Services Group and the company New Energy Vehicle Group.
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