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.

Evergrande defaulted on its huge debts in 2021, which sent shockwaves through global financial markets.

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, which defaulted on its debt repayments in 2021, has been working to renegotiate its agreements with creditors.

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

The company's Hong Kong-listed shares have been suspended from trading since March 2022.

Evergrande revealed last month that it lost a combined 581.9bn yuan ($80bn; £62.7bn) over the last two years.

Last week, another major Chinese property giant, Country Garden, warned that 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 of the financing flowing," said Steven Cochrane of economics research firm Moody's Analytics.

 

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oh no

Sounds like China's real estate market is going down the swanny. 

LOL