China Evergrande Group (3333. H.K.), the second-largest Chinese real estate company by sales, has sought bankruptcy protection in a U.S. court. The company filed for Chapter 15 bankruptcy in a Manhattan, New York court.

Chapter 15 of the U.S. bankruptcy code provides relief under American bankruptcy law to foreign companies with local assets. It permits cooperation between U.S. and foreign courts to unwind and restructure affected firms.

Evergrande has assets in the U.S., and its dollar-denominated bonds were issued in New York. The company is struggling with an enormous debt load of over 2.4 trillion yuan ($330bn), making it the world’s most indebted real estate developer.

• Evergrande is seeking protection from U.S. creditors as it pursues restructuring agreements with foreign and local creditors. The company said it had applied to the Manhattan court to recognize its debt restructuring processes in the British Virgin Islands, where it’s incorporated, and Hong Kong, where its shares are listed.

• Evergrande defaulted on its debt in 2021, becoming a poster child for China’s property crisis. The Hong Kong Stock Exchange suspended trading of its shares in March 2022.

• Country Garden (HKG: 2007), China’s largest real estate developer, is facing a similar fate as Evergrande. It has reported billions of dollars in losses and racked up a debt load exceeding $200bn, prompting fears of a default in the coming weeks.

Evergrande has reported $81bn in losses over the past two years; $66bn in 2022 and $15bn in 2021. The struggling company will meet with Hong Kong creditors later this month for a restructuring proposal.

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