China Evergrande Group, a major Chinese property developer, has filed for bankruptcy protection under Chapter 15 of the U.S. bankruptcy code as part of one of the world’s largest debt restructurings. Evergrande’s offshore debt restructuring involves a total of $31.7 billion, which includes bonds, collateral, and repurchase obligations.
The company has faced a liquidity crisis since mid-2021 and has sought protection from creditors that hope to sue or tie up its assets in the United States. The company is nearing the end of its restructuring process after more than one and a half years of negotiations with creditors. Since Evergrande ran into trouble, other Chinese property developers have also defaulted on their offshore debt obligations, causing worries about the contagion risks to the financial system and the economy.
Read more about this story at Reuters.