Property developer China Evergrande has filed for bankruptcy protection in the US, as the company pursues a prolonged restructuring agreement with international creditors that hold billions of dollars in bonds.

Evergrande defaulted on its dollar-denominated debts in late 2021, sparking a sector-wide liquidity crisis that has weighed on China’s economic growth and put increasing pressure on policymakers in Beijing. The company has about $19bn in overseas liabilities, according to Bloomberg data.

Fellow developer Country Garden, the largest privately owned homebuilder in China which was until recently seen as safer than many of its highly-levered peers, also missed payments on its international debts this month, and investment group Zhongrong similarly failed to repay savings products.