China Vanke (2202) is seeking to extend the grace period for a 2 billion yuan (HK$2.21 billion) bond payment to 30 trading days, from the current five, a filing showed.

The developer also proposed to extend principal repayment by one year and pay 60 million yuan in interest by December 22, the filing to National Association of Financial Market Institutional Investors showed.

The bond in question was due December 15, and has five-business-day grace period.

The developer's first attempt to extend repayment was rejected by holders, and it is holding a second meeting with bondholders that will start on Thursday and culminate with voting on December 22 at 0200 GMT.

The package also seeks a waiver of procedural time limits to speed up the timetable for convening the meeting before the current five-business-day grace period expires; failure to pass the waiver would trigger a default.

Each of the three proposals requires at least 90 percent approval.

The cash-strapped developer surprised the market last month by seeking a debt extension after billions of loans support from its state shareholder Shenzhen Metro this year.

Vanke's Shenzhen-listed shares were recently down 0.4 percent on Wednesday, while its Hong Kong-traded stock was 2.2 percent higher.

REUTERS

China Vanke seeks 30-trading-day grace period for note due December 15