China’s Evergrande files for bankruptcy protection in the U.S.

August 18, 2023 08:09 AM PDT | By Invezz

China’s Evergrande files for bankruptcy protection in the U.S. — Image source: Invezz

Evergrande had defaulted in 2021

The property giant had announced a programme to restructure its offshore debt last year that followed its default in December of 2021.

Trading in Evergrande Group has remained suspended over the past eighteen months. In its statement this morning, the construction company revealed to have:

Applied for recognition of schemes of arrangement under offshore debt restructuring for Hong Kong and British Virgin Islands. The application is a normal procedure and doesn’t involve bankruptcy petition.

The stock market news arrives shortly Evergrande said it narrowed its loss sharply in 2022 as it continued to limit costs.

Is China’s Country Garden also at risk?

On Friday, Tianji Holdings and Scenery Journey filed for Chapter 15 bankruptcy protection in the Manhattan court as well. Tianji is an affiliate of China’s Evergrande and Scenery Journey is one of the subsidiaries of Tianji Holdings.

Earlier this week, GimmeCredit also downgraded the bonds of Country Garden Holdings – another one of Chinese real estate companies to “deteriorating”. According to Jim Cramer:

When I hear about another crisis in China, all I can think is, been there done that. China is dubious distinction being considered by many the most powerful country on Earth but also the shakiest financial system.

China’s economy grew at an annualised pace of 6.3% in Q2 versus 6.9% expected.

The post China’s Evergrande files for bankruptcy protection in the U.S. appeared first on Invezz.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.