China developer Evergrande files for bankruptcy protection

Embattled Chinese property giant Evergrande Group filed for bankruptcy protection in the United States on Thursday, court documents showed, a measure that protects its US assets while it attempts to restructure.

Evergrande, once China's top property developer, was found in 2021 to be struggling with more than $300 billion in liabilities.

In the latest filings in New York, Tianji Holding and Scenery Journey – of which Evergrande is the ultimate holding company – filed for Chapter 15 protection, which provides mechanisms for dealing with insolvency cases involving more than one country.

Evergrande has worked on an offshore debt restructuring agreement for months and unveiled a proposal earlier this year.

The plan offers creditors a choice to swap their debt into new notes issued by the company and equities in two subsidiaries, Evergrande Property Services Group and Evergrande New Energy Vehicle Group.

Evergrande first defaulted on its bonds in 2021, fanning fears of a contagion.

The latest court documents referenced restructuring proceedings in Hong Kong.

In July, Evergrande reported a net loss of more than US$113 billion in 2021 and 2022.

The group's liabilities stood at almost US$340 billion at the end of 2022, with US$85 billion of borrowings. The developer had at that time about US$2 billion in total cash.