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China Vanke’s bond investors voiced concerns about its plan to delay bond payments at a meeting with Shenzhen officials. Regulators from the state asked bondholders to express their opinions on the one-year extension plan by Vanke for its RMB 2bn ($283mn) bond due December 15. At least three bondholders have already indicated that they would oppose the extension plan, which will be reviewed in the next meeting on December 10. Reports suggest that the meeting left a number of investors disappointed. Late last week, the builder announced two other proposals in a filing that bondholders can consider at the upcoming meeting. The new proposals include sweeteners such as added credit enhancements and a requirement that interest payments are paid as originally scheduled.
Vankes dollar bonds continue to trade at deeply distressed levels of 20 cents on the dollar.
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