Builder China Aoyuan Seeks Debt Restructuring Recognition in US

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.

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 decidinglast 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 ...