Embattled developer China Evergrande Group has filed for protection from creditors in a U.S. bankruptcy court as part of its debt restructuring process, as anxiety grows over China's worsening property crisis and a weakening economy.
The company sought protection under Chapter 15 of the U.S. bankruptcy code, which shields non-U.S. companies that are undergoing restructurings from creditors that hope to sue them or tie up assets in the United States.
The filing is procedural in nature, but the world's most indebted property developer with more than $300 billion in liabilities has to do it as part of a restructuring process under U.S. law, two people familiar with the matter said.