“China’s second largest Property Developer, EVERGRANDE, has filed for, get this, Chapter 15 Bankruptcy. Yes, you read that right, Chapter 15, which is ancillary to a primary proceeding brought in another country, typically the debtor’s home country…While EVERGRANDE is China’s #2 Property Developer, it’s bigger competitor, COUNTRY GARDEN, with annual revenues of more than $70 billion, is now also on the verge of collapse. The company’s 8% bonds due in 2024 are trading at a paltry 9 cents, signaling massive losses for the bondholders. The yield is skyrocketing, meaning nobody expects it to be paid. China’s property meltdown continues.”
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