China’s property giant Evergrande has filed for bankrupcy protection in the United States as China’s real estate crisis worsens.

This will enable the deeply indebted corporation to safeguard its U.S. assets while negotiating a large-scale settlement with creditors.

In 2021, Evergrande stopped paying its large loans, shocking the world’s financial markets.

The decision was made as worries about the world’s second-largest economy grow in response to issues in China’s real estate industry.

On Thursday, China Evergrande Group filed for Chapter 15 bankruptcy protection in a court in New York. A foreign firm can protect its U.S. assets under Chapter 15 while it seeks to restructure its debts.

According to its website, the group’s real estate division has over 1,300 projects in more than 280 Chinese cities.

It also runs a football team and an electric vehicle manufacturer.

After falling behind on debt obligations, Evergrande has been attempting to renegotiate its contracts with its creditors.

It was the most indebted real estate developer in the world, with debts believed to be worth more than $300 billion (£235 billion).

Trading on the company’s shares has been halted since last year. Evergrande disclosed last month that it lost 581.9 billion yuan ($80 billion; £62.7 billion) during the previous two years.

Some of the largest firms in China’s real estate industry need help raising the funds necessary to finish projects.