China's Evergrande Group, formerly the country's second-largest property developer, has officially filed for bankruptcy in New York on Thursday.

The company, burdened with heavy borrowing and debt defaults in 2021, triggered a significant property crisis within China's economy that continues to reverberate.

Evergrande's bankruptcy filing falls under Chapter 15 protection, a legal provision designed to facilitate collaboration between US courts and foreign courts in cross-border insolvency cases. This type of filing enables a US bankruptcy court to intervene when international dimensions are involved.

Despite CNN's request for comment, Evergrande has not responded at the moment.

The developer has struggled to manage its debt obligations, which had mounted to 2.437 trillion yuan (approximately $340 billion) by the close of the previous year, constituting around 2% of China's total gross domestic product.

In a recent stock market disclosure, Evergrande reported a loss of $81 billion in shareholder value over 2021 and 2022.

The default by Evergrande in 2021 set off a domino effect within China's property market, negatively impacting homeowners and the broader financial system. Subsequently, other significant Chinese developers, such as Kasia, Fantasia, and Shimao Group, also faced debt defaults. Most recently, Country Garden, another major Chinese real estate player, hinted at potential debt management measures, raising speculation about potential debt restructuring as it grapples with financial challenges.

Earlier this year, Evergrande revealed a substantial debt restructuring plan, the largest of its kind in China's history. The company indicated that it had reached binding agreements with its international bondholders on crucial terms related to the plan.