After two years of bankruptcy, the Chinese real estate giant has filed for bankruptcy in a New York court. Requesting protection from international creditors and fearing the repercussions of this on the Chinese economy
Chinese real estate company Evergrande filed for bankruptcy in a New York court and filed for bankruptcy protection under Chapter 15 of the US Bankruptcy Code, a section of the code that protects creditors by giving them the right to participate in bankruptcy cases declared US, including foreign. The American media publishes it.
Evergrande, that was it At one time it was second only to Country Garden Holding Company in China’s real estate sector in terms of turnoverShe had been bankrupt two years ago, due to the large debts she had accumulated. A month ago, the company disclosed a capital loss of $81 billion between 2021 and 2022, admitting a Total debt was $340 billion (2 percent of China’s GDP) at the end of last year.
“The news renewed fears of a slowdown in the real estate sector, on which more than a quarter of Chinese economic activity depends,” the Financial Times writes. But fear of infection. And the turmoil threatens to spread to other areas of the economy, even as Beijing grapples with deflation, slowing exports and rising youth unemployment.
The meeting with creditors will take place this month in Hong Kong to discuss a restructuring plan presented in March, the largest ever in China, to make payments to international creditors.
Here is a selection of articles published on Foglio telling of the Evergrande crisis two years ago.
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