Struggling Chinese Real Estate Firm Evergrande Files For Bankruptcy — As Crisis For Sector Grows – Home

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Topline

Chinese language actual property big Evergrande Group filed for Chapter 15 chapter safety in New York on Thursday—a blow following years of monetary battle that helped ignite China’s ongoing property disaster.

Evergrande has skilled important difficulties following the beginning of the Covid-19 pandemic and … [+] its impact on the Chinese language actual property market. (Picture by Jakub Porzycki/NurPhoto through Getty Photos)

NurPhoto through Getty Photos

Key Details

The submitting will permit Evergrande to guard itself and its property within the U.S. whereas it really works by means of a multi-billion greenback restructuring plan introduced earlier this yr.

The submitting comes days after one other Chinese language actual property behemoth, Country Garden, noticed its inventory plummet to its lowest worth ever Monday, because the sector teeters on the brink.

Hong Kong and the Cayman Islands are referenced within the Chapter 15 petition because the places of the restructuring proceedings.

Evergrande’s affiliate Tianji Holdings and subsidiary Surroundings Journey additionally filed for Chapter 15 safety, according to Bloomberg.

Evergrande didn’t instantly reply to a request for remark.

Massive Quantity

$81 billion. That was the quantity of web losses incurred by Evergrande in 2021 and 2022.

Forbes Valuation

$2.8 billion. That’s Forbes’ estimated web value of Evergrande’s chairman Hui Ka Yan, one in all China’s largest and most indebted actual property builders.