China's Evergrande Group Withdraws Bankruptcy Protection Filing in US Court

Chinese real estate company Evergrande Group withdrew its Chapter 15 bankruptcy protection filing submitted to a U.S. court last year. This is analyzed as a decision based on the difficulty of offshore debt restructuring following the commencement of liquidation proceedings against Evergrande Group in Hong Kong.

[Image source=Reuters Yonhap News]

According to the Wall Street Journal (WSJ) and others on the 24th (local time), Evergrande Group, along with its affiliate Tianji Holdings and its subsidiary SJ, submitted documents to withdraw their bankruptcy protection filing to the New York bankruptcy court on the 22nd. The news of their bankruptcy protection withdrawal was disclosed through documents submitted to the Hong Kong Stock Exchange on the same day. Tianji and SJ serve as Evergrande Group’s overseas funding channels.

Evergrande stated the reason for withdrawing the bankruptcy filing as "judging that the agreement on (debt restructuring) has not progressed under the current method." Evergrande Group filed for bankruptcy protection in a U.S. court last August for offshore debt restructuring. However, in January this year, the Hong Kong court issued a liquidation order. It appears they judged that recovery through debt restructuring is difficult.

Evergrande Group defaulted on its debt at the end of 2021, failing to repay debts exceeding $300 billion.

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