Financially troubled China Evergrande Group has filed for bankruptcy in the US as it undergoes restructuring. The group has been hard hit by reversals in the property sector in China and enduring much higher levels of debt.
According to Nikkei, Evergrande has filed for Chapter 15 protection in New York, which is meant for insolvency cases involving non-US companies.
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The Nikkei report noted that Evergrande, China’s second-largest property developer, defaulted on its debt in 2021, triggering a property crisis that remains a drag on China’s economy. The company lost $81 billion in 2021 and 2022, Nikkei said.
The Evergrande group’s EV arm, New Energy Vehicle Group, recently unveiled a restructuring proposal that gives a Dubai automaker, NWTN, a 27.5% stake.
