China Developer Vanke Plans Second Bondholders' Meeting to Avoid Onshore Default
State-backed China Vanke is convening a second bondholder meeting after creditors rejected a one-year payment extension on a 2 billion yuan bond due December 15, raising questions about government support for even "safe" property developers.
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CN Vanke is racing against time to avoid default, announcing a second bondholder meeting to negotiate repayment terms for a 2 billion yuan ($283.56 million) onshore bond due December 15. The move comes after creditors decisively rejected the state-backed developer's initial proposal to delay payment by one year, intensifying concerns about the financial health of even China's most prominent property companies.
CN Vanke is racing against time to avoid default, announcing a second bondholder meeting to negotiate repayment terms for a 2 billion yuan ($283.56 million) onshore bond due December 15. The move comes after creditors decisively rejected the state-backed developer's initial proposal to delay payment by one year, intensifying concerns about the financial health of even China's most prominent property companies.The upcoming meeting, scheduled to begin Thursday with voting concluding December 22 at 0200 GMT, represents a critical test for the developer and the broader Chinese property sector. According to a filing with the National Association of Financial Market Institutional Investors on Monday, Vanke has a five-business-day grace period from the bond's Monday due date to reach an agreement with creditors.
