2023-08-18 22:15:21
According to foreign reports, Evergrande Group, a leading real estate company in China with debts as high as 330 billion US dollars, filed for bankruptcy protection in Manhattan Bankruptcy Court in New York on the 17th Eastern Time. (Photo/Archyde.com)
[周刊王CTWANT] Evergrande Group, the leading real estate company in China with debts as high as US$330 billion so far, is only 33 days away from being delisted from the mainland, waiting for restructuring or bankruptcy ruling. , according to Chapter 15 of the US Bankruptcy Code, filed for bankruptcy protection in Manhattan Bankruptcy Court, New York, USA. According to the regulation. Assets located in the United States can also be protected when corporate arrangements are restructured elsewhere. Experts believe that this move will make it impossible for US-funded banks to file lawsuits, and Evergrande can exchange for time to buffer debts to complete China’s “guarantee delivery” task, but in any case, it has already impacted the outside world’s confidence in the mainland real estate industry.
Xu Jiayin, chairman of China Evergrande Group. (Photo/Archyde.com)
Shock foreign capital’s confidence in mainland real estate
Evergrande clarified that the application to the U.S. court is an overseas debt restructuring procedure and does not involve bankruptcy. Evergrande is currently undergoing overseas debt restructuring. This debt restructuring plan proposed in March this year was approved by the Hong Kong court in July. Creditors will vote on the offshore debt restructuring plan at the end of August. Approved by the Court of the Islands. It is reported that Evergrande proposed to hold a bankruptcy protection hearing on September 20.
Yesterday, China Evergrande issued an announcement saying: “The company is currently proceeding with the overseas debt restructuring (reorganization) as planned. Since the group’s US dollar bonds are governed by New York law, the company is in accordance with Chapter 15 of Title 11 of the United States Code. , to apply to the U.S. court to recognize the overseas debt restructuring (reorganization) arrangement under the legal system of Hong Kong and the British Virgin Islands (BVI), which is part of the normal overseas restructuring (reorganization) procedure and does not involve bankruptcy claims.”
China Evergrande just announced on the evening of the 16th that in order to allow creditors under the Evergrande agreement arrangement time to consider the proposed subscription and its impact on the creditors of the Evergrande agreement arrangement, it has decided to postpone and reconvene the Evergrande agreement arrangement meeting. The extension to the 28th is also seen as Evergrande’s intention to gain more time to consider a new restructuring plan.
According to Evergrande’s court documents, the company is seeking restructuring negotiations in Hong Kong, the Cayman Islands and the British Virgin Islands. Evergrande’s recent debts have reached US$330 billion.
Designed to prevent U.S. banks from suing
“Sing Tao Daily” reported that Li Zhaobo, an honorary teaching and research scholar of the Asia-Pacific Business Research Institute of the Chinese University of Hong Kong’s business school, said that Evergrande’s application for bankruptcy protection in Meisheng aims to prevent US-funded banks from filing lawsuits and cushion debts, so as to complete China’s “guarantee delivery” Building” task. If successful, another financially troubled mainland real estate company, Country Garden, will follow suit, but it may affect the confidence of foreign investors in mainland real estate companies.
As for why Evergrande did not file for bankruptcy in China, Li Zhaobo pointed out that political issues were involved. As Evergrande is a leading real estate company in China, if something goes wrong, it will cause bank turmoil, and people who buy Evergrande properties will not be able to get houses.
In addition, according to Evergrande’s filing for bankruptcy protection in Bel Singh, the face value of Evergrande’s outstanding US dollar bonds is US$14.2 billion, and the accumulated balance as of July 31 this year is US$16.8 billion. In addition, the main purpose of this document is to explain to the court why Evergrande’s current situation is in line with bankruptcy protection, and it is pointed out that Evergrande has no major assets overseas; it mainly pays dividends from subsidiaries to repay US dollar debts.
The successful reorganization will help the group come back to life
Liu Zefeng, a partner at Continental Jingzhe Law Firm, said that Evergrande filed for bankruptcy protection, which means that the company is insolvent or obviously lacks the ability to repay its debts. If Evergrande can reorganize successfully, then the company can be brought back to life. After deducting the manager’s fees and other expenses, the creditors will be distributed in sequence and in proportion.
According to the resumption guidelines proposed by the Hong Kong Stock Exchange, Evergrande has postponed the hearing of five winding-up petitions, and the shares of China Evergrande can only resume trading after being revoked or lifted. There are only 33 days left until September 21, the last date for China Evergrande’s 18-month stock suspension. If Evergrande fails to resolve the liquidation petition and successfully resumes trading, the listed entity will be delisted.
The “Economic Daily” sponsored by the State Council of the Mainland pointed out on the 18th that although some large real estate companies face debt risks, which affect market expectations, the problem is phased.
See more CTWANT articles
The 11-year-old daughter summoned and shouted “someone is knocking on the door”!Dad returned home and was shocked to see the dead body under the bed, and the police confirmed that he was raped and strangled to death
Male internet celebrity fucks up his sister’s belly!His “incest 18-year-old girl is pregnant” dragged his girlfriend and didn’t help her to give birth. Netizens’ three views were destroyed
Innolux’s married man secretly ate No. 3 wife and was exposed to the shocking private life of the “special sleeping director”… The identity is super big
see more related news
Digging workers become the richest man and the most philanthropic Evergrande chairman Xu Jiayin went up and down
JPMorgan Chase’s reverse operation increases Country Garden’s over 100 million stake
The time has not come for Evergrande to affect Taiwan Business Co., Ltd. Lehman
Troika decelerates China’s economic deflation warning
China Evergrande Files for Bankruptcy Protection in Bel Singh Shocks Confidence in Mainland Real Estate Industry
1692408214
#China #Evergrande #Files #Bankruptcy #Protection #Bel #Singh #Shocks #Confidence #Mainland #Real #Estate #Industry