China Evergrande, the world's most heavily indebted property developer, just filed for Chapter 15 bankruptcy protection
Business InsiderJUL 2023
Two of China's biggest property developers have filed for bankruptcy protection in the past week, sending a chill through the international real-estate industry. There's no end in sight for the struggling Chinese real-estate sector, and it risks dragging down other sectors as well. It's a deep, structural crisis in property and construction caused by debt and demographic problems that will take years to resolve.
Evergrande's bankruptcy filing in the US should be seen as a normal procedure for a company that is trying to protect itself from creditors while finalizing a restructuring deal elsewhere. While China's property debt crisis is deepening, Evergrande Group, one of its most indebted companies, is too big to fail; therefore, its refinancing must be successful.