Chinese real estate giant Evergrande files for bankruptcy in the United States

The heavily indebted Chinese real estate giant Evergrande on Thursday requested its placement in the United States under bankruptcy proceedings according to court documents. This measure aims to protect its American assets, until an agreement to restructure its debt is found. The American procedure known as “Chapter 15” aims to provide mechanisms to manage insolvency cases involving more than one country.

The private conglomerate Evergrande found itself in difficulty in 2021, with an abyssal debt of more than 300 billion dollars, when the Chinese authorities tightened their control over the real estate sector. Evergrande has quickly become the symbol of the crisis in the private real estate sector in China, which remains in great difficulty, with builders finding themselves unable to complete their projects, and facing the multiplication of legal proceedings and refusals from landlords. to repay their loan.

For several months, the group has been working on a plan to restructure its debt, and made a proposal in this direction earlier this year. The promoter has indicated that it is proposing in particular to its creditors to exchange the debt for new bonds and a stake in two subsidiaries, including its ambitious branch of electric vehicles. The difficulties of the former number 1 in real estate have raised fears in 2021 of its collapse and risks of contagion, making the world's second economic power shudder.

According to the latest court documents submitted, the ongoing restructuring proceedings are taking place in Hong Kong. In July, the Evergrande group announced a net loss of more than 113 billion dollars (100 billion euros) for the years 2021 and 2022. Beijing recently unveiled measures to revive the crucial real estate sector, in particular by putting providing credit support and cutting red tape.