Sino-Ocean Creditors Vote Down $278 Million Bond Extension

State-backed Chinese developer Sino-Ocean Group Holding Ltd. lost a vote by bondholders on its proposal to extend 2 billion yuan ($278 million) of onshore bonds due Wednesday and narrowly won a one-month reprieve.

The outcome means the cash-squeezed company avoided a default for now and has 30 days to work out an extension plan that bondholders will support, people familiar with the matter said.