China Evergrande bankruptcy

Home > Industry Analysis > Content

【Summary】China Evergrande, a troubled property developer, has filed for bankruptcy in the US due to financial difficulties caused by the property sector downturn and high levels of debt. The filing was made under Chapter 15, which deals with insolvency cases involving non-US companies. Evergrande's default on debt in 2021 has had a negative impact on China's economy. Additionally, its EV arm, New Energy Vehicle Group, has proposed a restructuring plan that involves a Dubai automaker receiving a 27.

FutureCar Staff Aug 20, 2023 6:44 AM PT

China Evergrande Group, facing financial difficulties due to the downturn in the Chinese property sector and mounting debt, has filed for bankruptcy in the United States. The group's troubles have had a significant impact on China's economy.

According to a report by Nikkei, Evergrande has sought Chapter 15 protection in New York, which is specifically designed for insolvency cases involving non-US companies.

The report also highlighted that Evergrande, the second-largest property developer in China, defaulted on its debt in 2021, leading to a property crisis that continues to weigh on the country's economy. Nikkei stated that the company incurred losses of $81 billion between 2021 and 2022.

In an effort to restructure, Evergrande's EV arm, New Energy Vehicle Group, recently unveiled a proposal that involves granting a 27.5% stake to a Dubai-based automaker called NWTN.