China Evergrande (3333.HK), the heavily indebted property developer, on Thursday filed for protection from creditors with the U.S. bankruptcy court in Manhattan.
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.
