Evergrande seeks US bankruptcy protection
China Evergrande, which is the world's most heavily indebted property developer, on Thursday filed for protection from creditors in a US bankruptcy court. The company sought protection under Chapter 15 of the US bankruptcy code, which shields non-US companies that are undergoing restructurings from creditors that hope to sue them or tie up assets in the United States. An affiliate, Tianji Holdings, also sought Chapter 15 protection on Thursday in Manhattan bankruptcy court. A lawyer for Evergrande did not immediately respond to requests for comment.  Evergrande recently had US$330 billion of liabilities. In a filing in the Manhattan bankruptcy court, Evergrande said it was seeking recognition of restructuring talks under way in Hong Kong, the Cayman Islands and the British Virgin Islands. Evergrande has said creditors may be able to vote this month on a restructuring, with possible approval by Hong Kong and British Virgin Islands courts in the first week of September. The company proposed scheduling a Chapter 15 recognition hearing for September 20. Last month, Evergrande posted a combined US$81 billion loss for 2021 and 2022, prompting investor worries about the viability of a debt restructuring plan it proposed in March. On Monday, its electric-vehicle unit China Evergrande New Energy Vehicle Group announced its own proposed restructuring. (Reuters)