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- China’s Evergrande propels debt woes by filing for bankruptcy protection in US court
China’s Evergrande propels debt woes by filing for bankruptcy protection in US court
China’s second-large realtor, as well as the world's most heavily indebted property developer, Evergrande filed for protection from creditors in a US bankruptcy court on Thursday, per Reuters.
The news came in after the real-estate company posted a combined $81 billion loss for 2021 and 2022 at the latest.
Along with the Evergrande, Tianji Holdings, a related company, also sought Chapter 15 protection in Manhattan bankruptcy court, said the news.
That said, Evergrande shares are not trading since 2022 as the company shook markets by missing bond payments.
It’s worth noting that the news crosses wires amid concerns about the financial health of China’s biggest realtor, namely Country Garden, as it missed the bond payment and is undergoing a 30-day grace period.
Market reaction
Given the looming concerns about China’s debt crisis and the real-estate woes, the news could add strength to the present risk aversion. However, the AUD/USD awaits more clues to react to the updates, making rounds to 0.6400 at the latest.
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