China's Evergrande declares bankruptcy

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【Summary】China Evergrande, a financially troubled property developer, has filed for bankruptcy in the US as it tackles its high levels of debt. The company's filing for Chapter 15 protection in New York highlights its ongoing insolvency issues. Evergrande's default on its debt in 2021 has had a negative impact on China's economy, with the company losing $81 billion over the past two years.

FutureCar Staff Aug 18, 2023 6:26 AM PT

China Evergrande Group, facing financial troubles due to reversals in the Chinese property sector and high levels of debt, has filed for bankruptcy in the US as part of its ongoing restructuring efforts.

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 impact China's economy. Nikkei stated that the company incurred losses of $81 billion between 2021 and 2022.

In a recent development, Evergrande's electric vehicle subsidiary, New Energy Vehicle Group, revealed a restructuring proposal that involves Dubai automaker NWTN acquiring a 27.5% stake in the company.