Builder China Aoyuan Seeks Debt Restructuring Recognition in U.S.

(Bloomberg) — China Aoyuan Group Ltd. filed for Chapter 15 bankruptcy in New York on Wednesday, a move by the defaulted property developer to seek U.S. court recognition for its offshore debt restructuring and ward off litigation.

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.