The giant Chinese real estate development group "Evergrande" applied for bankruptcy in the United States, in a measure aimed at protecting its assets in America.
The bankruptcy protection under Chapter 15 aims to propose mechanisms for insolvency settlement in cases involving more than one country.
The private “Evergrande” group faced difficulties in 2021 as a result of huge debts that exceeded $ 300 billion, when the Chinese authorities strengthened their measures to control the real estate sector.
The giant company has become a symbol of the acute crisis that the private real estate sector is still suffering in China due to the inability of development companies to complete their projects, with the increase in judicial mechanisms against them and the refusal of some owners to pay their loans.
The group has been working for months on a plan to restructure its debt abroad and submitted a proposal in this regard earlier this year.
Evergrande reported that it is proposing, in particular, to its creditors to exchange its debts for new bonds and stakes in two of its subsidiaries, especially its e-vehicle car branch.
The group began to face difficulties in 2021, which raised fears about its collapse and the affects of this slide on other companies.
According to the latest published court documents, the restructuring mechanism is taking place in Hong Kong.
In July, Evergrande announced net losses of more than $113 billion (100 billion euros) for the years 2021 and 2022.
Beijing recently revealed measures to revive the main real estate sector in its economy by adopting support for borrowing and limiting administrative transactions.
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