China’s real estate giant Evergrande files for bankruptcy

China’s Evergrande Group — once the country’s second-largest property developer — on Thursday submitted a bankruptcy petition in New York, CNN reported.
The beleaguered firm, which faced significant debt and defaulted on its financial obligations in 2021, sparking a massive property crisis in the Chinese economy, is still grappling with the repercussions.
Evergrande filed for Chapter 15 bankruptcy protection, which allows a US bankruptcy court to step in when an involvency case involves another country. Chapter 15 bankruptcy is intended to help promote cooperation between US courts, debtors, and other countries’ courts involved in cross-border bankruptcy proceedings, as per CNN. According to CNN, Evergrande did not immediately respond to its request for comment.
Meanwhile, the property developer has struggled to pay off its loans, which reached 2.437 trillion yuan (340 Billion USD) by the end of last year — or roughly 2 per cent of China’s entire gross domestic product (GDP).