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Evergrande Files for Bankruptcy

Evergrande Group is the second largest real estate developer in China (by sales). The public company was founded in 1996, incorporated in the Cayman Islands and headquartered in Guangdong Province, China. Evergrande has developed over 170 properties in China.

The company also boasts of various business offerings including its majority ownership stake in Guangzhou Evergrande Chinese football club and a 45% stake in Faraday Future, an American electric vehicle (EV) company.

According to the BBC, the group has filed a chapter 15 bankruptcy in New York, after facing several financial setbacks including a total liability of approximately $340 billion USD as of December 2022. Chapter 15 bankruptcy filings allow corporate entities outside the USA obtain access to courts in America, fostering cooperation between multiple business jurisdictions. This filing protects the US assets of the corporation while they undergo restructuring efforts.

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