China Evergrande files Chapter 15 bankruptcy in New York

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China Evergrande Group sought Chapter 15 bankruptcy protection in New York on Thursday, court papers show, reported Bloomberg.

Chapter 15 bankruptcy protects a company’s US assets while restructuring arrangements are worked out elsewhere.

International debt-restructuring deals sometimes require a Chapter 15 filing in the course of finalising a transaction.

Evergrande proceedings in Hong Kong

Evergrande’s petition references restructuring proceedings being carried out in Hong Kong and the Cayman Islands.

Evergrande’s petition references restructuring proceedings being carried out in Hong Kong and the Cayman Islands https://t.co/KAv67ePq8g

— Bloomberg (@business) August 17, 2023

The Chinese builder has been working for months to finalise an offshore debt restructuring plan. In July, it received court approval to hold votes on the deal. Meetings are scheduled for later this month.

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