supporter Real estate Chinese Evergrande Group He has filed for bankruptcy protection in New York court under Section 15 of the US Bankruptcy Act, according to court documents seen by the Bloomberg news agency.
Strictly speaking, this Section 15 protects the company’s assets. While the US negotiated restructuring dealsn in other jurisdictions.
International debt restructuring agreements sometimes require a Chapter 15 lawsuit to be filed during the completion of a transaction.
As such, Evergrande’s petition refers to the restructuring procedures carried out in Hong Kong and the Cayman Islands.
The Chinese construction company has been working for some time to finalize a debt restructuring plan outside of its home country. It received court approval to vote on the deal in July, and meetings are scheduled for later this month.
‘Offshore’ debt of more than 1,700 million euros
Last March, Evergrande announced its plan to restructure part of its ‘offshore’ debt, which later amounted to about 140,284 million yuan (€17,702 million).
Chinese real estate giant besieged Difficulty coping with a responsibility Estimated at around $300,000 million (275,665 million euros), the company failed to meet its own deadline to announce its restructuring plan by the end of 2022.
Evergrande released its overdue accounts for 2021 and 2022 last July, during which the company posted a total loss of 581,211 million yuan (€73,369 million at current exchange rates).
Specifically, the Chinese real estate giant suffered a loss of 476,095 million yuan (60,161 million euro) in fiscal 2021, with some ‘red numbers’ managing to reduce it to 105,116 million yuan (13,283 million euros) in 2022.
In fiscal year 2020, the Chinese developer net attributable profit 8,076 million yuan (1,020 million euro).
The disclosure of the company’s accounts for 2021 and 2022 was part of Evergrande’s relisting efforts after its shares were suspended in March 2022.
Problems for Evergrande began two years ago when the Chinese group realized its liquidity difficulties and default risks.
The Chinese real estate industry is not going through its best moment. Country Garden, the largest real estate developer in China, and controlled by the richest woman in the giant Asian Yang Huiyan warned a few days ago that he expects to record losses between 45,000 and 55,000 million yuan (5,675 and 6,937 million euros) in the first half of 2023, causing its price to plummet on the Hong Kong Stock Exchange.
Country Garden attributed the loss estimate to the decline in the gross margin of the real estate business and the increased impairment and associated loss of real estate projects as a result of lower sales in the real estate sector. exchange rate fluctuations.