The troubled Chinese real-estate firm Evergrande has filed for Chapter 15 bankruptcy in a US court.
The development comes five months after the real estate behemoth unveiled its long-awaited restructuring plan, the largest in China’s history, and 20 months after the firm defaulted on its debt – sparking a massive property crisis the reverberations of which are still being felt today.
Chapter 15 bankruptcy protection allows a court to step in when an insolvency case involves another country.
It is aimed at promoting cooperation between US courts, debtors, and other countries’ courts involved in cross-border bankruptcy proceedings.
Let’s take a closer look at the rise and fall of Evergrande:
Humble beginnings
Evergrande sprung from the mind of Xu Jiayin.
As per Nikkei Asia, Xu, hailed from a poor family in Henan Province. His father was a World War II veteran and his mother died soon after giving birth to him.
Brought up by his grandmother, Xu recalled in a 2017 speech how he ate only sweet potato and steamed bread in his school years.
“The sheets I laid, the quilts I covered, and the clothes I wore were all covered with piles of patches,” said Xu, also known as Hui Ka Yan in Cantonese.
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Source: www.firstpost.com
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