TROUBLED Shenzhen-listed developer Yango Group Co. received a reprieve after its parent company got bondholders’ approval to delay payment of a local bond due this week.

Holders of the 400 million yuan (US$63 million) bond issued by Fujian Yango Group, parent of Yango Group, supported a proposal Friday to extend principal payment of the debt due Tuesday by a year, according to the Shanghai Clearing House.

The agreement, reached at a second meeting with bondholders, came after negotiations failed earlier last week.

Domestic developers face almost US$1.3 billion in bond payments in December, after a month in which investor sentiment toward the property sector showed signs of stabilizing despite fresh indications of liquidity pressure.

Yango Group became the latest company to try to avoid default through extending bonds earlier this month.

The firm will issue a total of US$669.9 million in new notes in a debt swap, as most of the bondholders agreed to extend the repayment to September 2022.

It has asked investors of the dollar bond tranches totalling US$747 million to exchange them for new notes personally guaranteed by its chairman, as it seeks to avoid a default on debt payments. (SD-Agencies)