China Evergrande Group, the real estate giant whose default two years ago accelerated a broader property debt crisis in the country, sought Chapter 15 bankruptcy protection in New York on Thursday.
The move protects it from creditors in the US while it works on a restructuring deal elsewhere. The Chinese homebuilder’s Chapter 15 petition references restructuring proceedings being carried out in Hong Kong and the Cayman Islands.
International debt-restructuring deals sometimes require a Chapter 15 filing in the course of finalizing a transaction. Last year, Beijing-based developer Modern Land China Co. also filed for Chapter 15 bankruptcy after failing to repay a $250 million bond and saying it would go forward with an offshore debt restructuring deal.
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