China Vanke Co. has outlined a proposal to delay repayment on a second onshore bond maturing this month, as the developer moves to avoid a default on nearly $2 billion of local debt coming due in the months ahead, people familiar with the matter said.

The Shenzhen-based firm, formerly China’s largest homebuilder by sales, told some creditors it is seeking a 12-month extension for both principal and interest on its 3.7 billion yuan ($524 million) note due Dec. 28, the people said. The bond’s 3% coupon would remain unchanged during the extension period, they added.