Why would a Chinese company go to the U.S. to file for bankruptcy? China's Evergrande, once one of the world's top 500, has applied for U.S. bankruptcy law protection with the U.S. Court in Manhattan, New York, on Thursday, August 17, 2023. Filing for bankruptcy seems a bit unlucky to ordinary people, but this is precisely the beginning of Tugili.
Because Evergrande Group had previously issued bonds to the American people, due to the company's poor management and other reasons, Evergrande once had a debt crisis and default. If it is not disposed of, allowing the situation to develop will inevitably trigger fear and anxiety among creditors and bring new and unnecessary losses to the company.
In order to suppress the impact of this unstable factor, the public was informed of their confidence in the company and filed for bankruptcy protection. Filing for bankruptcy protection does not equal bankruptcy, let alone bankruptcy. According to Chapter 15 of the U.S. Bankruptcy Code, foreign debtors are allowed to apply for bankruptcy asset protection in the country, avoid them from being maliciously collected by creditors, prevent creditors from filing lawsuits against applicants or freeze their assets in the United States, and gain sufficient time for them to obtain more debt restructuring, ensure the smooth progress of asset restructuring, and apply for bankruptcy protection in a timely manner.
