China Evergrande Group – once the second largest property developer in the mainland – has filed for bankruptcy protection in the US, as it nears the end of its restructuring process.
China Evergrande Group is seeking protection under Chapter 15 of the US bankruptcy code, according to a filing. This will protect the assets of non-US companies undergoing restructuring and also shield them from being sued by creditors.
In a separate statement, the property developer also said that it will ask the US court for «recognition of the schemes of arrangement under the offshore debt restructuring for Hong Kong and the British Virgin Islands,» adding that the application is a «normal procedure for the offshore debt restructuring». It proposed scheduling a Chapter 15 recognition hearing for September 20.
The offshore restructuring of Evergrande’s debt involves over $31.7 billion, including bonds, collateral, and repurchase obligations. A meeting with creditors will be held later this month on a restructuring proposal.
