Sudden! Evergrande Group applies for bankruptcy protection for creditors in the United States | Bankruptcy Law | United States
According to foreign media reports, on the 17th local time, Evergrande Group applied for creditor protection to the US bankruptcy court located in Manhattan. According to analysis reports, this move aims to protect its US assets from the influence of creditors while conducting restructuring transactions elsewhere.
According to reports, Evergrande stated in its filing with the court that it is seeking recognition for restructuring negotiations in Hong Kong, the Cayman Islands, and the British Virgin Islands. Evergrande Group stated that creditors may vote on the restructuring this month and may obtain approval from courts in Hong Kong and the British Virgin Islands in the first week of September.
Evergrande proposes to hold a bankruptcy protection hearing on September 20th.
According to Chapter 15 of the United States Bankruptcy Code, allowing US bankruptcy courts to recognize bankruptcy or debt restructuring proceedings involving foreign countries, non US companies can use Chapter 15 of the Bankruptcy Code to prevent creditors from filing lawsuits or freezing their assets in the United States. Chapter 15 Bankruptcy Law also gives foreign creditors the right to participate in U.S. bankruptcy cases, and prohibits discrimination against these foreign creditors.
On the evening of August 16th, Evergrande Real Estate Group Co., Ltd. received the "Notice of Filing" issued by the China Securities Regulatory Commission today. Due to the company's suspected illegal and irregular information disclosure, in accordance with laws and regulations such as the Securities Law of the People's Republic of China and the Administrative Penalty Law of the People's Republic of China, the China Securities Regulatory Commission has decided to file a case against the company.
Foreign media previously reported that Evergrande's debt restructuring, which is deeply mired in debt, has revealed a jigsaw puzzle. As part of the overall debt restructuring, Evergrande Automobile plans to convert the related loans of HKD 20.89 billion into new shares at a conversion price of HKD 3.84 per share; After the equity conversion is completed, Dubai automaker Newton Group will invest $500 million in 27.5% of Evergrande Auto's shares.
China Evergrande Group announced on Wednesday that in order to give creditors time to consider the subscription agreement for Dubai based automaker Newton Group, the company has decided to postpone the creditors' meeting.
Evergrande's stock was suspended from trading on March 21 last year.
According to records from the Manhattan Bankruptcy Court, Evergrande's subsidiaries Tianji Holdings and Jingcheng Company also filed for bankruptcy protection under Chapter 15 on the 17th.