Chinese real estate giant Evergrande has filed for bankruptcy in a New York court. He takes her back there CNN. The company, once the second largest in the sector in China by turnover, entered bankruptcy in 2021 due to heavy debts, sending the entire real estate market in the Asian giant into crisis.

Evergrande has filed for Chapter 15 bankruptcy protection, which allows the US Bankruptcy Court to grant recognition of insolvency or debt restructuring proceedings involving foreign countries.

Chapter 15 gives foreign creditors the right to participate in declared US bankruptcy cases and prohibits discrimination against these foreign creditors.

Last month, Evergrande reported that it lost $81 billion in capital in 2021 and 2022, according to an exchange filing. The document also revealed that Evergrande’s total debt reached 2.437 trillion yuan ($340 billion) by the end of last year, or about 2% of China’s GDP.

In March this year, Evergrande unveiled a multi-billion dollar restructuring plan to make payments to its international creditors. The company had more than $270 billion in total liabilities, making the restructuring plan the largest ever in China.