Evergrande withdraws US Chapter 15 bankruptcy protection application

Chinese property developer Evergrande Group says it will withdraw the application for Chapter 15 bankruptcy protection which it filed with a US court last August.

The heavily-indebted developer has been discussing with creditors how to repay its foreign-currency-denominated debts since it filed for the protection.

But the liquidation order made by a Hong Kong high court in January made it virtually impossible for the company to implement the debt-restructuring plan.

Evergrande on Sunday announced its decision to withdraw the Chapter 15 application, saying that it's difficult to implement debt-restructuring as planned.

The Chinese government has taken a stricter policy toward real-estate related companies that have too much debt in a bid to improve the domestic property market.