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Vanke Wins Grace-Period Extension to Jan. 28, Staving Off Immediate Default

The rejected 12-month principal deferral leaves the developer under acute refinancing pressure.

Overview

  • Bondholders approved extending the grace period on a 2 billion yuan note that matured on December 15 to January 28, a Chinamoney filing shows.
  • Creditors voted down a 12-month principal delay, with only about 20.2% support, short of the supermajority required.
  • The longer grace period averts a default that would have occurred as the original window was set to expire on Monday.
  • Vanke is seeking investor consent to delay repayment on a separate 3.7 billion yuan bond due December 28.
  • Fitch downgraded Vanke to C and warned of a restricted default rating if obligations remain unmet, as analysts flag potential fallout for confidence in top-tier city housing markets.