Evergrande, one of China's largest real estate developers, has filed for bankruptcy and protection from creditors in the United States, initiating a restructuring of its massive debt worth billions of dollars.

According to the Financial Times, the bankruptcy filing in the New York court is based on the procedure under Chapter 15 of the US Bankruptcy Code, which is used by foreign companies to recognize their restructuring measures in the United States.

It is known that in August, Evergrande Group plans to meet with creditors in Hong Kong to review the restructuring plan that was proposed in March.

At the end of 2021, Evergrande defaulted on its dollar-denominated debt, which triggered a crisis in China's real estate sector and affected other companies in the industry, which successively caused a "chain" of defaults.

The situation has had a negative impact on China's economic growth and continues to put pressure on domestic political pressure. According to Bloomberg, the company's total international liabilities amount to about $19 billion.

There are now concerns about a slowdown in the real estate sector, which traditionally accounts for more than a quarter of China's economy. The negative effects could spread to other sectors of the economy, threatening to further delay the economic recovery in a country that already faces challenges in deflation, exports and unemployment.

Evergrande is one of the world's leading companies in terms of debt. Its total liabilities are estimated at $340 billion, and in July it announced losses of $81 billion for 2021 and 2022.

At the time of the default, Evergrande had about $20 billion worth of international bonds outstanding and offered investors bonds related to the group's Hong Kong-listed subsidiaries.