(Bloomberg) -- China Vanke Co. said it’s making plans to resolve liquidity pressure and short-term operational difficulties and told Wall Street that its executives remain free to travel abroad, seeking to assuage concern about its ability to stave off default. 

The cash-strapped developer has made a comprehensive plan to stabilize operations and reduce debt, which could alleviate the pressures, Vanke said after holding an investor event on Sunday. The company said it will prioritize using its own resources to fix the issues.

Vanke will also “make full use of all existing financing facilities” and is receiving understanding and support from financial institutions, Chairman Yu Liang and President Zhu Jiusheng told a meeting with brokerages including Citigroup Inc., UBS Group AG, Morgan Stanley and China International Capital Corp., according to a filing to the Shenzhen stock exchange.

The company’s executives promised in the meeting to deliver all homes under construction on time.

Vanke’s stocks and bonds tumbled last week, leading an industrywide selloff, after S&P Global Ratings became the third major ratings company to cut it to junk territory. JPMorgan Chase & Co. lowered its recommendation on the shares to underweight in early April, saying Vanke faces a “challenging” period of deleveraging and relying on the support of banks and state-owned enterprises.

The company has recently been hit by various market rumors and controversies involving a local partner. In Sunday’s meeting, Vanke executives denied speculation that the government banned managers above the group vice-president level from traveling overseas after a chief partner in Central China went AWOL, according to the filing.

They said this partner went to stay in the US for family reasons after he resigned in 2023. Overseas business trips by group managers remain normal, they added, noting Zhu had just returned from Hong Kong and Co-President Zhu Baoquan was headed to Japan.

On projects in Yantai, Vanke said police decided not to build a case against the company for alleged fund embezzlement reported by its partner in the eastern Chinese city. Tax authorities didn’t conclude Vanke’s Yantai unit intended to evade taxes, the executives said.

China’s top leaders have grown increasingly alarmed about the country’s protracted real estate crisis and its effect on the sluggish economy.

Read more: China Gives Rare Show of Support to Stressed Developer Vanke 

China’s financial regulators and the local Shenzhen government — Vanke’s top shareholder - recently helped arrange talks between creditor banks and the developer on a possible debt swap. The move would help China’s second-largest real estate company avoid a public default while giving banks collateral to protect against any potential losses, Bloomberg reported last month.

In February, the company shocked investors by reporting a 53% plunge in contracted sales, the biggest drop in at least six years. In March, Vanke posted a 46% decline in full-year net profit, the largest slump since its 1991 listing, and failed to propose a dividend for the first time. 

The company faces a maturity wall in 2025, when 36.2 billion yuan ($5 billion) of onshore and offshore bonds come due, according to S&P Global. As of end-2023, the company had accessible cash of 36.3 billion yuan, the ratings company estimated.

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