Evergrande Group, China’s severely indebted property conglomerate, filed for Chapter 15 bankruptcy protection in a U.S. court
The corporation mentioned restructuring actions in Hong Kong, the Cayman Islands, and the British Virgin Islands in a file with the Manhattan bankruptcy court.
Evergrande said in a separate statement on Friday that it will petition a US court for “recognition of the schemes of arrangement under the offshore debt restructuring for Hong Kong and the British Virgin Islands.”
It went on to say, “The application is a normal procedure for offshore debt restructuring and does not involve a bankruptcy petition.”
In March, the world’s most indebted property developer declared bankruptcy in 2021 and proposed an offshore debt restructuring scheme. Evergrande share trading has been halted since March 2022.
Chapter 15 bankruptcy protection enables a U.S. bankruptcy court to intervene in a cross-border insolvency case involving foreign corporations undertaking creditor restructuring. It strives to protect debtors’ assets and ease the rescue of financially troubled firms.
According to the filing, Tianji Holdings, an Evergrande affiliate, and its subsidiary, Scenery Journey, also filed for Chapter 15 bankruptcy protection in Manhattan bankruptcy court.