Chinese real estate giant Evergrande group sought bankruptcy protection in a U.S. court on Thursday as the country’s real estate crisis worsened.
Evergrande was dubbed the “world’s most heavily indebted property developer” and was said to have become a symbol of China’s real estate market crash.
In the filing filed with the Manhattan bankruptcy court, the company requested protection under Chapter 15 of the US bankruptcy code, which shields non-US corporations undergoing restructuring from creditors who intend to file lawsuits or seize assets in the United States. The restructuring discussions for Evergrande are currently taking place in Hong Kong, the Cayman Islands, and the British Virgin Islands.
In March of 2021, Evergrande went into default and unveiled an offshore debt restructuring plan. Since March 2022, the trading of Evergrande shares has been suspended.
According to the petition, Evergrande affiliate Tianji Holdings and its subsidiary Scenery Journey also filed for Chapter 15 bankruptcy protection in a Manhattan court.