China Evergrande files for Chapter 15 bankruptcy

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China Evergrande files for Chapter 15 bankruptcy
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Heavily-indebted Evergrande, which has symbolized China's property crisis, made its filing amid growing fears that the sector's troubles will spread to other...

A Chapter 15 bankruptcy is a way for foreign companies with U.S. assets to get access to domestic courts, and protect it from U.S. creditors while it restructures overseas.

Heavily-indebted Evergrande, which has symbolized China’s property crisis, made its filing amid growing fears that the sector’s troubles will spread to other parts of the country’s economy. Since mid-2021, companies accounting for 40% of Chinese home sales have defaulted, stoking fears about the resilience of the world’s second-largest economy.

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