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reditors of Chinese developer Xinyuan Real Estate have filed an involuntary Chapter 11 petition in a New York court to recover unpaid bonds. The petition, submitted on April 15, claims that bondholders Cithara Global Multi-Strategy, Mars Partner, and Star Freight & Trading are owed $65.8m by the company.

    Xinyuan has been struggling due to financial turmoil, similar to several other Chinese developers. In 2022, it missed an interest payment and defaulted on $170m in bonds due in January 2024. The company had previously undertaken a debt exchange in June 2023 and appointed Alvarez and Marsal as its restructuring adviser.

    Xinyuan's US assets could potentially be liquidated to repay the outstanding bonds. In 2024, it filed for bankruptcy for its subsidiary Hudson 888 Owner, which reportedly owed creditors $100m to $500m. Under US bankruptcy law, creditors can request court supervision if a company fails to meet debt obligations.

    The company has not responded to an email seeking comment. The bankruptcy case is being heard in the US Bankruptcy Court for the Southern District of New York. This move follows a similar petition filed against Guangzhou R&F Properties in July 2023, where two creditors sought bankruptcy restructuring for the Chinese property developer.