China Evergrande , which is the world's most heavily indebted property developer and became the poster child for China's property crisis, on Thursday filed for protection from creditors in a U.S. bankruptcy court.

China Evergrande (3333.HK), which is the world’s most heavily indebted property developer and became the poster child for China’s property crisis, on Thursday filed for protection from creditors in a U.S. bankruptcy court.

The company sought protection under Chapter 15 of the U.S. bankruptcy code, which shields non-U.S. companies that are undergoing restructurings from creditors that hope to sue them or tie up assets in the United States.

An affiliate, Tianji Holdings, also sought Chapter 15 protection on Thursday in Manhattan bankruptcy court.

A lawyer for Evergrande did not immediately respond to requests for comment.

Evergrande’s filing comes amid growing fears that problems in China’s property sector could spread to other parts of the country’s economy as growth slows.

Since the sector’s debt crisis unfolded in mid-2021, companies accounting for 40% of Chinese home sales have defaulted.

  • AttackBunny@kbin.social
    2·
    1 year ago

    Maybe I’m dumb, but if I go buy property in Mexico (for instance) and the government decides to take it, or I stop paying on it, or run out of money, I don’t get any protections for my money. I can’t file for bankruptcy and keep my money safe. I gambled and lost.

    Why do non American companies/people have the opportunity to file for bankruptcy as protection in a country they aren’t beholden to the rules of?