China Evergrande Files For Chapter 15 Bankruptcy Protection In US
Portfolio Pulse from Benzinga Neuro
China Evergrande Group (OTC:EGRNF), China's most indebted property developer, has filed for Chapter 15 bankruptcy protection in a U.S. court. The company, facing a severe debt crisis, is seeking protection from creditors who aim to sue or tie up assets within the U.S. Evergrande's affiliate, Tianji Holdings, also filed for Chapter 15 protection. Evergrande, with liabilities of $330 billion, is seeking recognition of restructuring talks happening in Hong Kong, the Cayman Islands, and the British Virgin Islands. The company's shares were suspended from trading in March 2022.
August 18, 2023 | 1:28 am
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China Evergrande Group has filed for Chapter 15 bankruptcy protection in the U.S. The company's shares were suspended from trading in March 2022.
The filing for bankruptcy protection indicates severe financial distress for China Evergrande Group. This news is highly relevant and important for investors as it directly impacts the company's ability to meet its financial obligations. The suspension of the company's shares from trading further exacerbates the situation, leaving investors unable to liquidate their holdings. Therefore, the short-term impact on the stock price is likely to be negative.
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