China Evergrande won approval to delay payments on one of its onshore bonds on Thursday (January 13).
And that may have just helped the company avoid a messy outcome.
Evergrande wanted more time for bond coupon and redemption payments to avoid a technical default, which would have complicated the company's politically sensitive restructuring.
In a statement, Hengda - an arm of Evergrande - said over 72% of those who voted approved the proposal to delay payments on the $157 million bond.
Evergrande is weighed down by $300 billion in liabilities, making it the world's most indebted real estate firm.
It has so far met payments on the onshore bonds which make up most of its debt.
However, it has defaulted on some offshore bonds.
Evergrande's woes are shared by other Chinese developers who have struggled with a liquidity squeeze.
Many face defaults and credit-rating downgrades due to curbs on borrowing.
Shanghai-based Shimao Group is talking to creditors about extending its payments according to documents seen by Reuters.
The World Bank has warned any severe downturn in the sector would be felt throughout China's economy.
It said the country's developers' combined onshore and offshore liabilities total almost 30% of the country's GDP.