Finally, the day has come!
China Evergrande seeks Chapter 15 protection in Manhattan bankruptcy court
Evergrande owes money to about 171 domestic banks and 121 other financial firms. There will be consequences for the banking system. A credit crunch could follow, analysts fear, which would be bad news for China and the global economy.
Remember Evergrande has struggled to pay off its loans after officially defaulting on its debt in late-2021. The property company’s debt load reached 2.437 trillion yuan ($340 billion) by the end of last year. That is roughly 2% of China’s entire gross domestic product. 2% GDP!