China Vanke Faces Next Test as Debt Default Pressure Builds

China Vanke Co. is bracing for its next major test as the developer that’s become a symbol of the nation’s broader property crisis navigates a proposal to delay bond payments and drafts broader restructuring plans.

Once China’s biggest builder, the Shenzhen-based firm must pitch revised extension proposals by the end of Monday to creditors holding two local notes totaling 5.7 billion yuan ($817 million) that initially matured in December, according to recent filings.

In prior votes, the holders rejected plans to delay payments for 12 months but agreed to extend the grace periods for several weeks. The company, ...