Vanke Wins Backing for Bond Delay Plan, Easing Default Risk

China Vanke Co. won enough creditor backing to extend payments on a yuan bond due Thursday for a year, easing the embattled developer’s risk of an imminent default, at least for now.

Under the proposal, the cash-strapped company would repay 40% of the principal of 2 billion yuan ($293 million) bond upfront and postpone the remainder by one year. All participating bondholders at the meeting voted in favor of the extension plan, which needed more than the 90% support for passage, according to a public filing to the Shanghai Clearing House on Tuesday.