China’s Real estate-Giant —EVERGRANDE— files for bankruptcy…

China’s leading real estate development company EVERGRANDE has filed for bankruptcy on the 7th Thursday 2023.

The company have set to announced  it’s bankruptcy under Section 15 Protection Act

It should be noted through the Chapter 15 declaration it Shields non US companies that are undergoing restructuring from creditors, where they will not be permitted to take legal action or being subject to asset freezes that exist within United States.

It is also reported that the company is seeking restructuring negotiations from Hong Kong, Camron Islands and also from British Virgin Islands.

It is reported the Chapter 15 recognition hearing is set for September 20th. With authorized approval from Hong Kong and British virgin Islands. EVERGRANDE had said creditors will be  able to vote on this month.

Some analysts warns and fears EVERGRANDE bankruptcy declaration could have a repel effect on China’s economy and growth.

For considerable duration from past couple of years it is well known of the crisis China’s property developer was going through, some have dubbed it as the poster child of China’s property crisis.

EVERGRANDE is the world’s most heavily indebted property developer.

The crisis said to have unfold from the mid 2021 and it has defaulted 40% of its Chinese home sales. It is been reported that recently company had liabilities amounting for 300 billion dollars.

Last month alone it has posted a combined loss of 81 billion dollars. And under these circumstances investors were quite skeptical of debt restructuring plans that said to be under way from the match of this year.