Evergrande Group is the world's most indebted property developer, with the equivalent of more than 300 billion US dollars. Creditors had sued the court because China Evergrande repeatedly missed payments.
The company had previously tried to avert liquidation with a restructuring plan. The settlement is likely to further reduce confidence in the struggling real estate market of China and cause turbulence on the stock market. Other companies in the Chinese real estate industry are also heavily indebted and sometimes fight with creditors in court.