The China Property Miss hits a New York bankruptcy court.

I'm David Brancaccio, what is likely the most indebted company in the solar system

and is the most indebted company on earth, is Evergrande, the real estate development

company out of China.

It's working to come up with ways to pay back hundreds of millions of dollars in debt

in several countries, but the firm has just filed for bankruptcy protection in a New York

court to project its US assets, Marketplace's Henry Epp reports.

Some of Evergrande's creditors are based in the US, so filing for bankruptcy in New York

protects the company from possible lawsuits from those investors.

It's a chapter 15 filing, part of the bankruptcy code that deals with cases involving multiple

countries.

The filing comes as Evergrande works out a separate restructuring deal for some of its

billions of dollars in debt owed to international bondholders.

The company is set to meet with creditors later this month.

Evergrande's attempts to tamp down its liabilities comes as China's once booming property development

sector contracts.

Country Garden, another major real estate company, is also facing a debt crisis.

And there are broader concerns in the Chinese economy which has struggled as it emerged from

strict pandemic lockdowns.

The country is facing deflation, falling exports, and lower consumer spending.

In response, the government lowered a key interest rate this week, and it's facing

some calls to take more measures to stimulate the economy.

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