Evergrande Group filed for bankruptcy protection in the United States? Informed sources: Evergrande indeed took the initiative to apply for the normal procedure of debt restructuring

In response to a recent market heated discussion on that China Evergrande Group filed for bankruptcy protection in the Manhattan Court of New York under Chapter 15 of the US Bankruptcy Code, informed sources said to the reporter of the Cailian Press that Evergrande had indeed applied for this move on its own initiative and announced it as a normal procedure to restructure its US-dollar debt, that is, it needs to apply for bankruptcy protection for debt restructuring. In this regard, Huang Lichong, president of Huisheng International (Hong Kong) Group Co., Ltd, said that the reason why Evergrande applied for bankruptcy protection in the Manhattan court was that it chose New York law in the legal documents when issuing US dollar bonds. According to Chapter 15 of the US Bankruptcy Code, US bankruptcy courts recognize bankruptcy or debt restructuring proceedings involving foreign countries. Besides, non-US companies can use Chapter 15 to prevent creditors from filing lawsuits against applicants in the United States or freeze their assets, which will buy them more time for debt restructuring.