Property developer China Vanke narrowly dodged a default on Monday after onshore bondholders approved a plan to extend the grace period of a RMB 2 billion ($284 million) bond repayment reports Reuters. The bond in question matured on December 15, and bondholders rejected an earlier proposal by Vanke to delay repayments.
But bondholders again rejected the state-backed developer’s proposal to delay repayment of the bond by one year, despite an offer to pay overdue interest by the end of the current five-day grace period on December 22.
The extended grace period to 30 trading days would mean Vanke now has until the end of January 27 to renegotiate and reach an agreement with bondholders on terms to delay the repayment. Otherwise, it would face a default and would likely need to pay all of its debt.