China Property Giant Evergrande Files For US Bankruptcy Protection

Property giant Evergrande has filed for bankruptcy protection in the US as the real estate crisis in China deepens.

It will allow the heavily-indebted company to protect its assets in the US as it works on a multi-billion dollar deal with creditors.

The company defaulted on its huge debts in 2021 which sent shockwaves through global financial markets, BBC said.

The move comes as problems in China’s property market add to concerns about the world’s second largest economy.

China Evergrande Group made the Chapter 15 bankruptcy protection filing in a New York court on Thursday.

Chapter 15 protects the US assets of a foreign company while it works on restructuring its debts.

Evergrande did not immediately respond to a request for comment from the BBC.

Also Read: BAE Systems Ventures Into US Space Sector With $5.6 Billion Ball Aerospace Acquisition

The group’s real estate unit has more than 1,300 projects in more than 280 cities in the country, according to its website.

Its other businesses include an electric car maker and a football club.

Evergrande has been renegotiating its agreements with creditors after defaulting on its debt repayments.

With debts estimated to total more than $300bn (£235bn), it was the world’s most heavily indebted property developer.

Its shares have been suspended from trading since last year.

Evergrande revealed last month it lost a combined 581.9bn yuan ($80bn) over a he last two years..

Last week, another major Chinese property giant, Country Garden, warned it could see a loss of up to $7.6bn for the first six months of the year.

Some of the biggest companies in China’s real estate market are struggling to find the money to complete developments.

“The key to this issue is to complete unfinished projects because this will at least keep some

The original article can be found here