(Bloomberg) — China Aoyuan Group Ltd. filed for Chapter 15 bankruptcy in New York on Wednesday, a move by the defaulted property developer to seek US court recognition for its offshore debt restructuring and ward off litigation.
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The Guangzhou-based developer, which had about $6 billion of total offshore interest-bearing liabilities as of the end of 2022, is undergoing restructuring in Hong Kong, Cayman Islands and the British Virgin Islands after deciding last year to forgo paying debt.
Its board has been advised by its advisers to “seek recognition of the Hong Kong proceedings and related relief from the US Bankruptcy Court for the Southern District of New York,” according to a company filing with the court. Without US court recognition, “there is litigation risk that dissenting holders of the existing public notes may file actions to enforce their claims in the US courts even after the Hong Kong…
