Avoiding a default which many feared might rattle confidence in the broader Chinese real estate sector, Chinese developer Country Garden Holdings Co. announced to creditors that it had paid the coupons of two dollar bonds within the grace periods.

Asking not to be identified discussing a private matter, noteholders spoke on the matter to the media. Country Garden had no public comment on the matter.

On August 7th, the builder, now recognized as one of the most indebted property developers in the world, failed to make a combined $22.5 million in interest payments on two dollar bonds. That triggered a mandatory 30-day grace period, which would have meant the payments would have to have been made by September 5-6, or the company would have officially entered into default.

With its payment, Country Garden, at one time China’s largest builder by sales, narrowly averted a first-time default. That has brought it a brief respite amid its liquidity crisis, which had shaken the nation’s financial markets. The development comes as the Chinese government is looking at how to revive a property market which is stagnating, and dragging down the nation’s broader economy with it.

Chaired by one of the richest women in China, Yang Huiyan, the developer’s failure to make its coupon payments last month shocked the Chinese markets, causing Chinese junk dollar bonds to fall to the lowest levels of the year. Analysts noted the liquidity crisis at Country Garden could have proven far more consequential than that at Chinese developer Evergrande, as Country Garden has more than 3,000 housing projects across the country, which is four times the amount China Evergrande Group has.

Country Garden has recently made a number of moves designed to avert defaulting on future debts. According to filings with the Shanghai Stock Exchange’s private disclosure platform which were reported on by Bloomberg News, late Friday, it won sufficient support in a vote to extend payments on a yuan note.

The developer is also proposing extensions on eight other yuan bonds by three years, according to bondholders which said they were briefed by advisers to the company.

Country Garden also recently wired a payment on a ringgit-denominated bond which had been coming due.

However the company is not in the clear just yet. In a recent report, the company revealed that it has suffered an unprecedented 48.9 billion yuan net loss, while attributable sales, which are a vital source of funding for developers, dropped 35% through July. In addition, through the rest of this year, it will still face over $2 billion of potential note obligations.