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

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. (Photograph by Jakub Porzycki/NurPhoto by way of Getty Photos)

NurPhoto by way of Getty Photos

Key Info

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

The submitting comes days after one other Chinese language actual property behemoth, Nation Backyard, 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, in accordance with Bloomberg.

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

Massive Quantity

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

Forbes Valuation

$2.8 billion. That’s Forbes’ estimated internet price of Evergrande’s chairman Hui Ka Yan, one among China’s largest and most indebted actual property builders.

Additional Studying

Main Chinese language Actual Property Developer Craters To File Low As Potential Default Reminds Buyers Of China’s ‘Actual’ Recession Threat (Forbes)

China Evergrande Group Recordsdata Chapter 15 Chapter in New York (Bloomberg)

Developer on the coronary heart of China’s ongoing property disaster misplaced $81bn up to now two years—greater than Google or Microsoft’s whole 2022 revenue (Fortune)