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08.17.23 17:15 ET – China Evergrande US Unit Files for Chapter 15 Bankruptcy

This is about to get seriously interesting as US investors might have just been handed a “participation” trophy for the misguided speculation in Chinese real estate.

From Reuters:

China Evergrande files for Chapter 15 protection from creditors – court filing

Excerpt:

China Evergrande (3333.HK) is seeking protection from creditors in the United States under Chapter 15 of the U.S. bankruptcy code, court documents showed on Thursday.

Earlier this week, the embattled property developer resolved to delay its meetings for the Hong Kong CEG Class A and Class C holders of debt to provide them more time to consider its fresh restructuring plan.

Hint: It’s not just Evergrande in trouble boys and girls.

For those who need a refresher on Chapter 15 Bankruptcy here is the code via the Cornell Law School:

11 U.S. Code Chapter 15 – ANCILLARY AND OTHER CROSS-BORDER CASES

If one has any questions about this, let me leave you with this thought:

This is the Chinese version of the New Century Mortgage failure of 2007 in the United States.

And yes, this has global implications as the dominoes in China begin to fall and a new global economic regime emerges.

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