Under the huge debt "pressure," real estate giant China Evergrande broke new news。

On August 17, local time, China Evergrande Group sought Chapter 15 bankruptcy protection in New York.。The charter reportedly allows U.S. assets to be protected when companies restructure in other regions。Reorganization proceedings under way in Hong Kong and the Cayman Islands are mentioned in the application documents of China Evergrande。At present, China Evergrande is also dealing with its foreign debt restructuring agreement.。

It's worth noting that filing for bankruptcy protection is not a bankruptcy liquidation, it's just a means to keep the company going.。

International debt restructuring transactions sometimes require filing under Chapter 15 in the course of completing the transaction。Last year, another property developer in China, Hyundai Land, failed to repay 2.The $500 million bond later said it would move forward with an offshore debt restructuring agreement, at which time Hyundai Land also filed for bankruptcy under Chapter 15 of the U.S. Bankruptcy Code.。

The restructuring of China Evergrande's foreign debt will be one of the largest in China's history.。Currently, China Evergrande's offshore debt restructuring involves a total of nearly $3.1 billion, including bonds, collateral, etc.。The sheer size of the debt means the process is sure to be lengthy。According to Evergrande's financial results, the company's total debt from 2021-2022 exceeded 2.4 trillion。

In August 2020, the debt problem of China Evergrande began to be discussed by the outside world.。Subsequently, Evergrande actively "rescued itself" by canceling dividends, discounting properties and selling assets several times.。However, due to the debt problem is too severe, by the end of 2021 Evergrande finally "can not hold"。In December 2021, Evergrande asked the international rating agencies to withdraw the rating, and then its guarantee of 2..$600 million debt default。

China Evergrande unveiled its foreign debt restructuring plan in March this year and has been pushing it forward in recent months。But the company has yet to receive the level of creditor support it needs for its restructuring plan, the company revealed in April.。At the end of July, the company stated that the High Court of the Hong Kong Special Administrative Region, etc., had separately directed that a meeting of creditors of each agreement arrangement be held on the Evergrande Agreement Arrangement, the Jingcheng Agreement Arrangement and the Space-based Agreement Arrangement.。A meeting on the arrangements for the three agreements is expected to be held on August 22-23.。Earlier this week the company said it had rescheduled the creditors meeting to August 28.。

At a time when China's Evergrande is "struggling," its "Evergrande Department" is having a hard time.。

After more than a year of suspension, two Evergrande listed companies, Evergrande Auto and Evergrande Property, resumed trading on the HKEx on July 28 and August 3, respectively.。But after the resumption of trading, the shares of the two companies plummeted.。At the time of the suspension, Evergrande Motors was 3.HK $84, share price of Evergrande Properties is 2.3 Hong Kong dollars。But today (August 18) Evergrande Auto closed at 1.HK $26, down about 67% from the resumption of trading。Evergrande Property closed at 0 today.HK $6, has fallen nearly 74%。

In addition, on August 16, Evergrande Real Estate Group Co., Ltd. announced on the SSE that it had received the Notice of Filing a Case issued by the CSRC, and that the CSRC had decided to file a case against the company in accordance with relevant laws and regulations because the company was suspected of illegal information disclosure.。Evergrande Real Estate said it will actively cooperate with the CSRC's investigation work and fulfill its information disclosure obligations in strict accordance with relevant requirements.。

In addition to Evergrande's deep debt crisis, this month, another real estate giant, Country Garden, also raised the alarm recently.。On August 14, Country Garden announced that 11 domestic bonds of the Company and its subsidiaries had been suspended from trading since August 14, 2023.。It is reported that Country Garden has a 3.9 billion yuan bond due on September 2, and Country Garden is seeking to extend the bond for three years.。At the same time, Country Garden also failed to pay interest on two US dollar bonds payable on August 7 and is still within a 30-day grace period.。As the expiration and grace period approaches, Country Garden's default risk is gradually increasing。

Notably, according to the Bloomberg Index, the average price of Chinese junk dollar-rated bonds (issued primarily by Chinese real estate developers) is currently only about 65 cents.。