By using this site, you agree to the Privacy Policy and Terms of Use.
Accept

News Junction

Notification Show More
Font ResizerAa
  • Home
  • World News
    World NewsShow More
    Former Olympic cyclist Rohan Dennis avoids jail time in wife’s death – National
    Former Olympic cyclist Rohan Dennis avoids jail time in wife’s death – National
    May 15, 2025
    A Russian delegation has arrived in Istanbul for Ukraine talks. It doesn’t include Putin
    A Russian delegation has arrived in Istanbul for Ukraine talks. It doesn’t include Putin
    May 15, 2025
    Once ‘dead’ thrusters on the farthest spacecraft from Earth are in action again
    Once ‘dead’ thrusters on the farthest spacecraft from Earth are in action again
    May 15, 2025
    ‘Don’t know what to do’: Johor Bahru’s heritage businesses near RTS station grapple with rising rents, inflation
    ‘Don’t know what to do’: Johor Bahru’s heritage businesses near RTS station grapple with rising rents, inflation
    May 15, 2025
    Jurors view ‘Freak off’ images too graphic to be shown to public
    Jurors view ‘Freak off’ images too graphic to be shown to public
    May 15, 2025
  • Business
    BusinessShow More
    Ukraine blows up bridges to consolidate its positions in Russia
    Ukraine blows up bridges to consolidate its positions in Russia
    August 18, 2024
    Commentary: AI phones from Google and Apple will erode trust in everything
    Commentary: AI phones from Google and Apple will erode trust in everything
    August 18, 2024
    The most famous Indian Dishes – Insights Success
    The most famous Indian Dishes – Insights Success
    August 18, 2024
    Life on the road as a female long rides cyclist
    Life on the road as a female long rides cyclist
    August 18, 2024
    UK inflation rises to 2.2%
    UK inflation rises to 2.2%
    August 18, 2024
  • Cryptocurrency
    CryptocurrencyShow More
    Ukraine strategic Bitcoin reserve bill reportedly in final stages
    Ukraine strategic Bitcoin reserve bill reportedly in final stages
    May 15, 2025
    Senate removes Trump provisions in push to pass stablecoin bill
    Senate removes Trump provisions in push to pass stablecoin bill
    May 15, 2025
    MOODENG price drops 14% to alt=
    MOODENG price drops 14% to $0.2613 after 703% weekly rally
    May 15, 2025
    Bitwise CIO bats for diversified crypto investment, compares Bitcoin to Google
    Bitwise CIO bats for diversified crypto investment, compares Bitcoin to Google
    May 15, 2025
    The Role of Altcoins in 2025’s Crypto Market
    The Role of Altcoins in 2025’s Crypto Market
    May 15, 2025
  • Technology
    TechnologyShow More
    How to Improve Your Spotify Recommendations
    How to Improve Your Spotify Recommendations
    August 18, 2024
    X says it’s closing operations in Brazil
    X says it’s closing operations in Brazil
    August 18, 2024
    Supermoon set to rise: Top tips for amateur photographers | Science & Tech News
    Supermoon set to rise: Top tips for amateur photographers | Science & Tech News
    August 18, 2024
    Scientists Want to See Videos of Your Cat for a New Study
    Scientists Want to See Videos of Your Cat for a New Study
    August 18, 2024
    OpenAI’s new voice mode let me talk with my phone, not to it
    OpenAI’s new voice mode let me talk with my phone, not to it
    August 18, 2024
  • Entertainment
  • Sports News
  • People
  • Trend
Reading: China Evergrande files for protection in US court as part of $32 billion debt overhaul By Reuters
Share
Font ResizerAa

News Junction

  • World News
  • Business
  • Technology
  • Cryptocurrency
  • Trend
  • Entertainment
Search
  • Recent Headlines in Entertainment, World News, and Cryptocurrency – NewsJunction
  • World News
  • Business
  • Cryptocurrency
  • Technology
  • Entertainment
  • Sports News
  • People
  • Trend
Have an existing account? Sign In
Follow US
News Junction > Blog > Business > China Evergrande files for protection in US court as part of $32 billion debt overhaul By Reuters
China Evergrande files for protection in US court as part of  billion debt overhaul By Reuters
Business

China Evergrande files for protection in US court as part of $32 billion debt overhaul By Reuters

Published August 18, 2023
Share
5 Min Read
SHARE

© Reuters. FILE PHOTO: A man walks past a No Entry traffic sign near the headquarters of China Evergrande Group in Shenzhen, Guangdong province, China September 26, 2021. REUTERS/Aly Song/File Photo

By Clare Jim, Jonathan Stempel and Dietrich Knauth

HONG KONG/NEW YORK (Reuters) – Embattled developer China Evergrande Group has filed for protection from creditors in a U.S. bankruptcy court as part of its debt restructuring process, as anxiety grows over China’s worsening property crisis and a weakening economy.

The company sought protection under Chapter 15 of the U.S. bankruptcy code, which shields non-U.S. companies that are undergoing restructurings from creditors that hope to sue them or tie up assets in the United States.

The filing is procedural in nature, but the world’s most indebted property developer with more than $300 billion in liabilities has to do it as part of a restructuring process under U.S. law, two people familiar with the matter said.

The developer’s offshore debt restructuring involves a total of $31.7 billion, which include bonds, collaterals and repurchase obligations

The sources declined to be named due to the sensitivity of the matter.

Evergrande declined to comment.

Once China’s top-selling developer, Evergrande has become the poster child of the country’s unprecedented debt crisis in the property sector, which accounts for roughly a quarter of the economy, after slipping into a liquidity crisis in mid-2021.

A string of Chinese property developers have defaulted on their offshore debt obligations since then, leaving unfinished homes, plunging sales and shattering investor confidence in a blow to the world’s second-largest economy.

The property sector crisis has also fanned financial contagion risk, which could have a destabilising impact on an economy already weakened by tepid domestic consumption, faltering factory activity, rising unemployment and weak overseas demand.

A major Chinese asset manager missed repayment obligations on some investment products and warned of a liquidity crisis, while Country Garden, the country’s largest private developer, has become the latest to flag a stifling liquidity crunch.

All of this comes at a time when property investment, home sales and new construction have contracted for more than a year.

Morgan Stanley (NYSE:) this week followed some of the major global brokerages to cut China’s growth forecast for this year. It now sees China’s gross domestic product (GDP) growing 4.7% this year, down from an earlier forecast of 5%.

DEBT RESTRUCTURING

Evergrande announced an offshore debt restructuring plan in March, expecting it to facilitate a gradual resumption of operations and generation of cash flow. It is now gathering creditor support to complete the process.

Evergrande’s creditors will vote later this month on its restructuring proposal, with possible approval by Hong Kong and British Virgin Islands courts in the first week of September.

An affiliate of the developer, Tianji Holdings, also sought Chapter 15 protection on Thursday in Manhattan bankruptcy court.

In a filing in the Manhattan bankruptcy court, Evergrande said that it was seeking recognition of restructuring talks underway in Hong Kong, the Cayman Islands and the British Virgin Islands.

The company proposed scheduling a Chapter 15 recognition hearing for Sept. 20.

In June last year, another Chinese developer, Modern Land (China) Co. Ltd, which missed payments on its offshore bonds that were due in Oct, 2021, had filed a petition for recognition under Chapter 15 of the bankruptcy code in New York.

Trading in China Evergrande shares has been suspended since March 2022. Shares of Evergrande Services plunged more than 12%, while China Evergrande New Energy Vehicle Group dropped 8% on Friday.

#China #Evergrande #files #protection #court #part #billion #debt #overhaul #Reuters

TAGGED:billionChinacourtdebtEvergrandefilesoverhaulpartprotectionReuters
Share This Article
Facebook Twitter Pinterest Whatsapp Whatsapp LinkedIn Email Copy Link Print
Share
What do you think?
Love0
Sad0
Happy0
Sleepy0
Angry0
Dead0
Wink0
Previous Article Coinbase Gets Green Light To List Crypto Futures In The… Coinbase Gets Green Light To List Crypto Futures In The…
Next Article Crews battle blazes, all 20,000 residents of Yellowknife told to go Crews battle blazes, all 20,000 residents of Yellowknife told to go
- Advertisement -

Latest Post

Former Olympic cyclist Rohan Dennis avoids jail time in wife’s death – National
Former Olympic cyclist Rohan Dennis avoids jail time in wife’s death – National
World News
Ukraine strategic Bitcoin reserve bill reportedly in final stages
Ukraine strategic Bitcoin reserve bill reportedly in final stages
Cryptocurrency
A Russian delegation has arrived in Istanbul for Ukraine talks. It doesn’t include Putin
A Russian delegation has arrived in Istanbul for Ukraine talks. It doesn’t include Putin
World News
Senate removes Trump provisions in push to pass stablecoin bill
Senate removes Trump provisions in push to pass stablecoin bill
Cryptocurrency
Once ‘dead’ thrusters on the farthest spacecraft from Earth are in action again
Once ‘dead’ thrusters on the farthest spacecraft from Earth are in action again
World News
MOODENG price drops 14% to alt=
MOODENG price drops 14% to $0.2613 after 703% weekly rally
Cryptocurrency
- Advertisement -

You Might Also Like

From Green Hype to Bailouts, the Nickel Industry Has Imploded
Business

From Green Hype to Bailouts, the Nickel Industry Has Imploded

February 4, 2024
‘I Love Miami’ – Jeff Bezos Plans To Unload A Massive Amount Of Amazon Shares, But Moving To Florida Will Save Him 0 Million In Taxes
Business

‘I Love Miami’ – Jeff Bezos Plans To Unload A Massive Amount Of Amazon Shares, But Moving To Florida Will Save Him $600 Million In Taxes

February 10, 2024
Italy introduces surprise windfall tax on banks’ interest rate profits
Business

Italy introduces surprise windfall tax on banks’ interest rate profits

August 8, 2023
A New Plan to Break the Cycle of Destructive Critical Infrastructure Hacks
Trend

A New Plan to Break the Cycle of Destructive Critical Infrastructure Hacks

August 6, 2024

About Us

NEWS JUNCTION (NewsJunction.xyz) Your trusted destination for global news. Stay informed with our timely and accurate reporting on diverse topics, including politics, technology, science, entertainment, sports, and more. Count on us for unbiased and reliable updates at your fingertips.

Quick Link

  • About
  • Disclaimer
  • Privacy Policy
  • Terms of Use
  • Contact

Top Categories

  • World News
  • Business
  • Technology
  • Entertainment
  • Cryptocurrency
  • Sports News
  • Trend
  • People

Subscribe

Subscribe to our newsletter to get our newest articles instantly!

    © 2023 News Junction.
    • Blog
    • Advertise
    • Contact
    Welcome Back!

    Sign in to your account

    Username or Email Address
    Password

    Lost your password?