China’s Evergrande Group, the world’s most indebted property developer, has filed for bankruptcy protection in the United States as it attempts to restructure and reach an agreement with creditors.
Evergrande, once China’s top developer, defaulted on its more than $300bn in debt in 2021, becoming a poster child for China’s property crisis.
Evergrande, as well as an affiliate Tianji Holdings, filed for Chapter 15 bankruptcy protection in a New York court on Thursday.
Chapter 15 provides mechanisms for dealing with insolvency cases involving more than one country.
The filing comes amid growing fears that problems in China’s property sector could spread as growth in the world’s second-biggest economy slows.
Since the sector’s debt crisis unfolded in mid-2021, companies accounting for 40 percent of Chinese home sales have defaulted.
Article from www.aljazeera.com