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China’s Evergrande pursues chapter 15 protection to ward off U.S. creditors

China’s Evergrande pursues chapter 15 protection to ward off U.S. creditors

Posted on August 18, 2023 |

China's Evergrande, a major property developer burdened with debt, initiated U.S. bankruptcy protection under Chapter 15.

Chapter 15 shields non-U.S. companies during restructurings, safeguarding them from lawsuits by creditors and asset entanglement in the U.S.

Evergrande's decision highlights concerns over China's property sector turmoil potentially impacting broader economic stability.

Ongoing restructuring discussions span multiple jurisdictions, including Hong Kong and the British Virgin Islands.

Evergrande proposed a creditor vote on restructuring in the current month, with court endorsements projected for September.

Evergrande's electric-vehicle unit, Evergrande NEV, unveils its restructuring plan involving debt-for-equity swap and share sale.