Property developer China Aoyuan Group has filed for Chapter 15 bankruptcy protection in a US court, looking to ward off litigation as the company restructures its debts, reports Nikkei Asia. Aoyuan joins a growing list of Chinese real estate developers that have applied for bankruptcy protection in the US, including China Evergrande Group and Sunac China Holdings.
The filing, submitted Wednesday local time, begins a case under Chapter 15 of the US bankruptcy code, which applies to foreign-domiciled companies. During the proceedings, creditors will be unable to sue the debtor or seize US-based assets.
Aoyuan is looking to implement a restructuring proposal for its offshore debt under these protections. On Nov. 29, Aoyuan said that creditors approved of its restructuring scheme. The program is expected to officially take effect pending a Hong Kong court ruling set for Jan. 8.