Chinese language actual property big Evergrande Group filed for Chapter 15 chapter safety in New York on Thursday—a blow following years of economic battle that helped ignite China’s ongoing property disaster.
The submitting will permit Evergrande to guard itself and its property within the U.S. whereas it really works by way of a multi-billion greenback restructuring plan introduced earlier this yr.
The submitting comes days after one other Chinese language actual property behemoth, Nation Backyard, noticed its inventory plummet to its lowest worth ever Monday, because the sector teeters on the brink.
Hong Kong and the Cayman Islands are referenced within the Chapter 15 petition because the areas of the restructuring proceedings.
Evergrande’s affiliate Tianji Holdings and subsidiary Surroundings Journey additionally filed for Chapter 15 safety, in accordance with Bloomberg.
Evergrande didn’t instantly reply to a request for remark.
$81 billion. That was the quantity of web losses incurred by Evergrande in 2021 and 2022.
$2.8 billion. That’s Forbes’ estimated web price of Evergrande’s chairman Hui Ka Yan, one among China’s greatest and most indebted actual property builders.