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Why did Evergrande and Country Garden go bankrupt?
When issuing US dollar bonds, the company chose new york law in its legal documents. According to the provisions of Chapter 15 of the United States Bankruptcy Law, the United States Bankruptcy Court is allowed to recognize bankruptcy or debt restructuring procedures involving foreign countries. At the same time, non-American enterprises can also use Chapter 15 of the United States Bankruptcy Law to prevent creditors from suing applicants in the United States or freezing their assets, so as to gain more time for their debt restructuring. Evergrande Country Garden uses high-end means, and bankruptcy protection can also be used to protect itself.