China Evergrande, the heavily indebted property developer, last night filed for protection from creditors with the US bankruptcy court in Manhattan.
The filing under Chapter 15 of America’s bankruptcy code came after China Evergrande, once China’s second largest property company, resolved to delay its meetings for Class A and Class C holders of debt, to provide more time to consider a new restructuring plan.
Since the sector’s debt crisis unfolded in mid-2021, companies accounting for 40 per cent of Chinese home sales have defaulted, most of them private property developers.
Trading in China Evergrande shares was suspended on March 21 last year. Another company, Tianji Holdings, also filed a related Chapter 15 petition yesterday.
Non-US companies use Chapter 15 to block creditors who want to