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by hebrox 1026 days ago
As I understand from this "The Plain Bagel" video [0], they're not bankrupt. Instead, they're likely nearing the completion of their debt restructuring.

[0] https://www.youtube.com/watch?v=c-n6RN8a2Zo

2 comments

They're restructuring their debt because they're bankrupt.
The problem is the term "bankruptcy". Colloquially people seem to think a company is just out of money. All you need to file for bankruptcy is to be unable to service debts at a specific time. It might even just be a transitory state.
A company is insolvent when liabilities exceed assets. Companies can remain insolvent indefinitely unless they miss a payment at which point a creditor can force them into bankruptcy where a court oversees liquidation.

Evergrande is insolvent and is now bankrupt. There is no reasonable scenario here where the company continues to operate as a growing concern.

TIL, more than one time of insolvency: https://en.wikipedia.org/wiki/Insolvency