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The filing under Chapter 15 of the U.S. bankruptcy code came after China Evergrande resolved to delay its meetings for the Hong Kong CEG Class A and Class C holders of debt, to provide more time to consider a fresh restructuring plan.
Since the sector’s debt crisis unfolded in mid-2021, companies accounting for 40% of Chinese home sales have defaulted, most of them private property developers.
Trading in China Evergrande shares was suspended on March 21 last year. Another company, Tianji Holdings, filed a related Chapter 15 petition on Thursday, Manhattan bankruptcy court records show.
Non-U.S. companies use Chapter 15 to block creditors who want to file lawsuits or tie up assets in the United States.
