China Evergrande Group, which is deeply trapped in the debt crisis, has submitted an application for withdrawal of bankruptcy protection to the US court.
China Evergrande Group Sunday (March 24) announced on the Hong Kong Stock Exchange. In view of the appointment of common and different liquidates, it is expected that the overseas bond agreement arrangements will not be carried out in the current way.According to the common understanding of the common and different clearing people, the legal advisers of Evergrande, Jingcheng, and Tianji's former foreign representatives submitted documents to the US courts on March 22, 2024, withdrawing from Evergrande, Jingcheng, and Tianji.(That is, the application for bankruptcy protection).
Announcement stated that the common and different liquidates still focus on the performance of their duties to preserve, maximize and return the value of the company's creditors and other stakeholders.At this stage, all plans still have to be considered. Common and different liquidates will submit new applications in accordance with Chapter 11 of the United States Code to support the plan that considers it to be necessary or appropriate.
China Evergrande Group applied for bankruptcy protection in New York in August last August according to Chapter 15 of the US Bankruptcy Law.The application also shows that the group is seeking recognition of the reorganization negotiations on three companies in the Hong Kong, Cayman Islands and the British Viking Islands.Evergrande Group's related company Tianji and Sceneryjourney also applied for bankruptcy protection from the Manhattan bankruptcy court based on Chapter 15.
However, Evergrande Group clarified that the company's application to the US court was part of the overseas reorganization procedure, which did not involve bankruptcy applications.
According to the above clauses, the company that is being reorganized in debt, its US assets can be protected, and creditors cannot prosecute or seize the company's assets in the United States.
In addition, the China Securities Regulatory Commission issued a announcement on March 18 that it was fined to Evergrande Group's Affiliated Company Evergrande Real Estate, and proposed to ban the founder of Evergrande Group Xu Jiayin into the securities market.On the same day, the Xianning Intermediate People's Court went to China Evergrande Group The consumption order implements high consumption restrictions on the group and its legal representative Xu Jiayin.
