2023-08-18 20:22:40
The private conglomerate Evergrande found itself in difficulty in 2021, with an abyssal debt of more than 300 billion US dollars. (Photo: 123RF)
New York — Heavily indebted Chinese real estate giant Evergrande filed for bankruptcy protection in the United States on Thursday, court documents show, a move to protect its U.S. assets until a settlement agreement is reached. restructuring of its debt is found.
The American procedure known as “Chapter 15” aims to provide mechanisms to manage insolvency cases involving more than one country.
The private conglomerate Evergrande found itself in difficulty in 2021, with an abyssal debt of more than 300 billion US dollars (B$ US), when the Chinese authorities tightened their control over the real estate sector.
Evergrande has quickly become the symbol of the crisis in the private real estate sector in China, which remains in great difficulty, with builders finding themselves unable to complete their projects, and facing the multiplication of legal proceedings and refusals from landlords. to repay their loan.
For several months, the group has been working on a plan to restructure its debt, and made a proposal in this direction earlier this year.
The promoter has indicated that it is proposing in particular to its creditors to exchange the debt for new bonds and a stake in two subsidiaries, including its ambitious branch of electric vehicles.
The difficulties of the former number 1 in real estate have raised fears in 2021 of its collapse and risks of contagion, making the world’s second economic power shudder.
According to the latest court documents submitted, the ongoing restructuring proceedings are taking place in Hong Kong.
The analyst Yan Yuejin, director of research at the E-house China Institute, was however reassuring in an interview with AFP, believing that Evergrande’s approach was “equivalent to the search for a better way to restructure its debt.
“In fact, Evergrande’s core business is still operational. After all, he has a heavy responsibility to ensure that the deliveries of pre-sold houses are well done,” he said.
In July, the Evergrande group announced a net loss of more than US$113 billion (100 billion euros) for the years 2021 and 2022.
The other giant of the sector, Country Garden, is also in difficulty following announcing last week that it was unable to repay two loan installments. The leading private real estate developer in China estimated its debt at the end of 2022 at some 150 billion euros (US$162 billion). But for the Bloomberg agency, it might reach 176 billion euros (US$191 billion).
Beijing recently unveiled measures to revive the crucial real estate sector, including putting in place credit support and cutting red tape.
1692393206
#Chinese #real #estate #giant #Evergrande #files #bankruptcy #United #States
