(Jan 12): A debt advisory firm asked China Vanke Co dollar bondholders to consider calling a default on the embattled developer’s notes, based on cross-default clauses, people familiar with the matter said. That’s as long as creditors representing at least 25% of the outstanding amount of any dollar bond agree. The debt adviser’s outreach comes as dollar bondholders confront a grim outlook, with Barclays estimating that in a worst-case scenario, recovery rates could be as low as 0.9%. In its earlier proposals to creditors, Vanke offered to pay interest within the grace period and floated unspecified credit enhancements while seeking a 12-month deferral on principal repayments. Separately, Houlihan Lokey Inc also approached Vanke’s dollar bondholders earlier, seeking to advise them.

Source: The Edge Markets January 12, 2026 10:12 UTC