Evergrande Group extends the deadline for debt holders to receive compensation to support the faltering real estate development company’s restructuring plan by three weeks, Invest-Gate reports.

The company ascribes the decision to the lack of sufficient support for comprehensive reform.

Evergrande says in a Thursday statement to the Hong Kong Stock Exchange that creditors holding more than 30% of a class of debt, including margin loans and repurchase obligations, have joined the restructuring support agreement.

It requires the approval of 75% of each group of creditors separately to implement the restructuring through so-called settlement plans, which Evergrande expected to achieve.

This group of creditors is known as Class C, which Evergrande previously estimated represented about $15 bn in claims.

On the other hand, the other major group is Series A, which represents $17 bn in claims. It includes a private group of bondholders who agreed to the restructuring plan weeks ago.

Evergrande says that more than 77% of its class. Creditors join the restructuring support agreement.

The deadline is extended to May 18th for creditors to agree to seek compensation under joining the restructuring support agreement.

Evergrande’s faltering over the past two years has contagious China’s high-yield dollar-denominated real estate corporate bond market, which has shrunk to $142 bn.

Due to liquidity tightening across the sector, the fallout from the company’s failures over the past year included record defaults and declining new home sales.

The company announced its long-awaited debt repayment proposal in March, 15 months after it defaulted on its first payment on a dollar-denominated bond.

Potential hurdles to the plan quickly surfaced, with law firm White & Case holding a conference call calling on Evergrande’s Class C creditors to form a committee and asking for more time to study the proposals, among other demands.

According to Invest-Gate, the Hong Kong plan requires 75% of all participating creditors by value, and a majority in number in each class, to vote in favor of the plan.

Noteworthy that the success of the debt restructuring is key to Evergrande’s bid to stop investors’ court efforts, which could lead to the company’s liquidation, with its next hearing scheduled for July.

The withdrawal or dismissal of the case is among the things required to resume trading in Evergrande shares and two listed units.