China’s heavily indebted property developer Evergrande group on Thursday filed for Chapter 15 bankruptcy protection in a U.S. court
In a filing to the Manhattan bankruptcy court, the firm sought recognition of restructuring talks under way in Hong Kong, the Cayman Islands and the British Virgin Islands. The world’s most indebted property developer defaulted in 2021 and announced an offshore debt restructuring program in March. Trading of Evergrande shares have been suspended since March 2022. The Chapter 15 bankruptcy protection allows a U.S. bankruptcy court to intervene in cross-border insolvency case involving foreign companies that are undergoing restructuring from creditors. It aims to protect the debtors’ assets and facilitate the rescue of businesses that are in financial trouble. Tianji Holdings, an affiliate of Evergrande, and its subsidiary Scenery Journey, also filed for Chapter 15 protection in a Manhattan bankruptcy court, according to the filing. Source: CNBC, FluentInFinance
The US saw a total of 340 bankruptcies in the first 6 months of 2023.
This is more than the first half of 2020 when the US went into a full lockdown. It’s the highest number of first half bankruptcies since 2010. Businesses are feeling the pain of higher interest rates. Source: The Kobeissi Letter
Larger Corporate Bankruptcy Filings, per Year through June
Bankruptcy filings by larger corporations in the first half of this year rose to the highest level since the same period in 2010, when they were coming down from the Financial Crisis Source: www.wolfstreet.com, WallStreetSilver