Comments by "Louis Giokas" (@louisgiokas2206) on "2.6 Trillion Mysteriously Vanished in Just 3 Years! Chilling When You Think About It..." video.

What I read about Chapter 15 bankruptcy states that this is done when there is also an insolvency in the home country of the debtor. Evergrande has not, as far as I know, filed bankruptcy in China. I wonder if the petition will be accepted. The hearing is, I think, next week. The guy at 8:05 shows an ignorance of the situation. Evergrande did not only raise money (take money as he states) in China. They also raised billions in the US.
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@Hedgehobbit Yes, I know. That is more for tax and convenience purposes. Several American companies do that as well. The US has cross border agreements with places like that. In the end, what matters is where the bulk of the assets are. The FTX case is instructive in this. FTX is incorporated in Antigua, but their bankruptcy is being done in the US. While these offshore venues are convenient, mostly for tax purposes, they really have no power if courts and creditors in major countries decide they want to handle the case. The issue is still, did they file for bankruptcy in their "home" country. What is the Chinese law on this? If they file for bankruptcy in the Cayman Islands, how does China deal with that. Do you have any information on that? It would be interesting to know.
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@johndoh5182 Well, my initial issue is what I read about Chapter 15. My understanding is that the company needs to have filed in the country in which they are located. We'll see what the bankruptcy court has to say on that. They may allow it to try to protect the US creditors, otherwise the US court has no real interest in protecting Evergrande. There is also the issue of how Evergrande would be able to pay off their debts in the US. Their prospects for doing this will also influence the ruling. As for your last point on tax and convenience purposes, you must be kidding. The reason these venues are chosen are precisely because they have very lax laws or low, or no, taxes or both on corporations. Another example of this is the flagging of commercial shipping. There are many small countries that become "flags of convenience" for similar reasons. You must not follow international finance or business very closely. I mentioned the FTX case above. You might want to look into that to see an example of how important those laws are when it comes to US or other large government involvement in bankruptcies. As for Evergrande in China the figures I have seen show a company that would be in bankruptcy just about anywhere else. Their debts dwarf their assets, and those assets are probably overvalued. The prognosis for their main business is abysmal. Those debts span everything from suppliers to banks and investment firms. There is a real question about whether they could build their way out of their current situation. Oh, and did I mention that the market for their product is drying up. As for the Chinese government doing what it wants, that is true, but only to a certain extent. If they keep it private, then it will go bankrupt, unless the government covers the losses. If they do that, they will experience an immediate loss themselves, and quite frankly they don't have the money for that. Their other choice, nationalization, would be very costly as well. You have to consider that Evergrande is not the only one. Whatever they do for Evergrande they will have to do for Country Garden and others. Why do you think they haven't done anything about it until now? There is also a real question about whether they really have the intellectual capacity within the CCP to come up with a solution.
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