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HomeUnited States & CanadaChina Evergrande files Chapter 15 bankruptcy protection in New York

China Evergrande files Chapter 15 bankruptcy protection in New York

WorldUnited States & Canada

China Evergrande files Chapter 15 bankruptcy protection in New York

The Chinese builder is seeking to protect its US assets from creditors while it works on a restructuring deal elsewhereEvergrande’s petition references restructuring proceedings being carried out in Hong Kong and the Cayman IslandsUnited StatesBloombergPublished: 6:04am, 18 Aug, 2023Why you can trust SCMP

China Evergrande Group sought Chapter 15 bankruptcy protection in New York on Thursday, a move that protects its US assets from creditors while it works on a restructuring deal elsewhere.

The Chinese home builder’s Chapter 15 petition references restructuring proceedings being carried out in Hong Kong and the Cayman Islands. Its Scenery Journey unit also filed for Chapter 15 protection, along with affiliate Tianji Holdings.

International debt-restructuring deals sometimes require a Chapter 15 filing while finalising a transaction. Last year, Beijing-based developer Modern Land China Co. also filed for Chapter 15 bankruptcy after filing to repay a US$250 million bond and saying it would go forward with an offshore debt restructuring deal.

Evergrande has been working for months to wrap up an offshore debt restructuring plan. Evergrande in April disclosed it did not yet have the level of creditor support needed to implement the plan. In July, it received court approval to hold votes on the deal. Meetings are scheduled for later this month.

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A bankruptcy lawyer for Evergrande did not immediately respond to a request for comment.

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