(New York) Heavily indebted Chinese real estate giant Evergrande on Thursday requested that it be placed in the United States under bankruptcy proceedings according to court documents, a measure aimed at protecting its American assets, while a settlement agreement restructuring of its debt is found.
The American procedure called “Chapter 15” aims to provide mechanisms to manage insolvency cases involving more than one country.
The private conglomerate Evergrande found itself in difficulty in 2021, with an abyssal debt of more than 300 billion dollars, when the Chinese authorities tightened their control over the real estate sector.
For several months, the group has been working on a project to restructure its debt, and made a proposal in this direction earlier this year.
The promoter has indicated that it is proposing in particular to its creditors to exchange the debt for new bonds and a stake in two subsidiaries, including its ambitious branch of electric vehicles.
The difficulties of the former number 1 in real estate raised fears in 2021 of its collapse and risks of contagion, making the world’s second economic power shudder.
According to the latest court documents submitted, the ongoing restructuring proceedings are taking place in Hong Kong.
In July, the Evergrande Group announced a net loss of more than $113 billion for the years 2021 and 2022.
Beijing recently unveiled measures to revive the crucial real estate sector, including putting in place credit support and cutting red tape.
