HK Movers | Vanke Jumps as It Aims to Avoid Default as Creditor Meeting Kicks Off

Vanke shares jumped in Hong Kong and in the mainland.

China Vanke Co. creditors met Wednesday as the distressed developer makes one more push to win support for a bond extension plan aimed at averting a default.

Holders of Vanke’s 2 billion yuan ($283 million) onshore note due Dec. 15 are set to convene online from 10 a.m. local time. They have until Friday to vote on the builder’s proposal to delay paying the security by one year. The company needs approval from holders of at least 90% of the amount owed. So far at least three have indicated opposition.

The proposal is a critical part of Vanke’s strategy to relieve liquidity stress and mitigate default risk. The builder’s largest state shareholder, Shenzhen Metro Group Co., has provided a lifeline in the past, offering over 30 billion yuan in shareholder loans. But it has more recently tightened financing terms in a shift in its approach to support that sparked a drop in Vanke’s securities to deeply distressed levels.