Property giant China Evergrande files for bankruptcy protection in US court
Embattled developer $China Evergrande (ADR)(EGRNY.US$ Group has filed for protection from creditors in a US bankruptcy court as part of its debt restructuring process, as anxiety grows over China's worsening property crisis and a weakening economy.
Once China's top-selling developer, $EVERGRANDE(03333.HK$ has become the poster child of the country's unprecedented debt crisis in the property sector, which accounts for roughly a quarter of the economy, after slipping into a liquidity crisis in mid-2021.
The developer has sought protection under Chapter 15 of the US bankruptcy code, which shields non-US companies that are undergoing restructurings from creditors that hope to sue them or tie up assets in the United States.
The filing is procedural in nature, but the world's most indebted property developer with more than US$300 billion in liabilities has to do it as part of a restructuring process under US law, two people familiar with the matter said.
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