China Evergrande Group filed for Chapter 15 bankruptcy protection in New York on Thursday, court papers viewed by Bloomberg show.
Evergrande’s petition references restructuring proceedings in Hong Kong and the Cayman Islands. Evergrande, one of China’s largest enterprises, has been fending off default fears for years. In 2021, it had as much as $310 billion in debts to bondholders, banks, building contractors, and other creditors. Now, China Evergrande appears to be suffering enough to file for Chapter 15 bankruptcy.
Chapter 15 bankruptcy protects a company’s US assets while they are restructuring arrangements elsewhere.
Hui Ka Yan, a Chinese businessman, launched Evergrande in Guangzhou, China, in 1996. Over the years, the company has grown to own over 1300 projects in over 280 cities across China.