China’s Evergrande says it is asking for US court to approve debt plan, not filing for bankruptcy

BEIJING (AP) — A giant Chinese real estate developer that is struggling to avoid defaulting on $340 billion in debt says it is asking a U.S. court to approve a restructuring plan for foreign bondholders and denied what it said were news reports suggesting it filed for bankruptcy. Evergrande Groupe’s mountain of debt prompted fears in 2021 of a possible default that might send shockwaves through the global financial system. The company says its request under Chapter 15 of the U.S. bankruptcy code is “a normal step in the overseas restructuring procedure and doesn’t involve bankruptcy filings.” Evergrande ran short of cash after Beijing tightened controls in 2020 on corporate debt the ruling Communist Party worries is dangerously high.