from Great Game India:
The company faced significant financial troubles and defaulted on its debt in 2021. This triggered a major property crisis in China’s economy, the effects of which persist today.
Evergrande sought Chapter 15 bankruptcy protection, allowing a US bankruptcy court to intervene in international insolvency cases. This provision facilitates collaboration between US courts, debtors, and foreign courts during cross-border bankruptcy cases.
TRUTH LIVES on at https://sgtreport.tv/
Effects of Evergrande’s Bankruptcy
China’s real estate sector used to be really important for the country’s economy. It made up around 30% of the country’s total economic output. But when Evergrande couldn’t pay its debts in 2021, it caused big problems for China’s property markets. This hurt not only people who own homes but also the wider financial system in the country.
Evergrande got into trouble when Beijing started to control how much money property developers could borrow. This was done to stop house prices from going up too much.
Since Evergrande fell apart, other big property developers in China like Kasia, Fantasia, and Shimao Group also couldn’t pay back what they owed. Just recently, another huge Chinese real estate company, Country Garden, said it might need to make changes to how it deals with its debts. This has led people to think that the company might need to reorganize its debts because it’s struggling to get enough money.
The problems in the real estate industry have become worse because China’s economy in general is slowing down.
A Potential Comeback Strategy?
Evergrande is a huge company that has more than 1,300 real estate projects in over 280 cities, as stated on its website. The company also does other types of businesses, like electric vehicles, healthcare, and theme parks.
Read More @ GreatGameIndia.com
