China Evergrande seeks bankruptcy protection

The news: Property developer China Evergrande has filed for protection from creditors in a US bankruptcy court as it works on a debt restructuring plan.

The numbers: Evergrande last month outlined USD330 billion ($515 billion) of liabilities, making it the world's most indebted developer. It posted a combined USD81 billion loss for 2021 and 2022, prompting investor worries about its ability to restructure debt.

The context: Court papers show Evergrande has filed for Chapter 15 protection, which shields a company’s US assets while restructuring arrangements are worked out elsewhere. Its filing comes amid growing fears that problems in China's property sector could spread to other parts of the country's economy, with developer Country Garden also defaulting on some bond payments recently. A default by Evergrande in 2021 triggered a string of defaults at other builders and left thousands of homes unfinished across China.