Chinese Property Giant Evergrande , Files for Bankruptcy Protection.
Evergrande filed for Chapter 15 bankruptcy protection in a Manhattan court on Aug. 17.
The firm is reportedly seeking recognition of restructuring negotiations taking place "in Hong Kong, the Cayman Islands
and the British Virgin Islands," NBC News reports. .
Evergrande revealed its offshore debt
restructuring plan after defaulting in 2021.
Trading of the property developer's shares
has been halted since March of last year.
Chapter 15 bankruptcy protection permits an American bankruptcy court to intercede in cases dealing with foreign companies restructuring. .
The filing seeks to secure a debtors' assets and
help to rescue a financially unstable business. .
Last month, Evergrande revealed that over
the past two years, it lost $81 billion.
Another major developer in China, Country Garden, recently issued a profit warning after having troubles making "coupon payments on U.S. dollar-denominated bonds," NBC News reports. .
It's also suspended trading of
11 onshore bonds, NBC News reports.
Troubles within China's property sector
have stoked fears that other parts of the
economy will begin to suffer more as well