China Vanke Preps Restructuring Plan in Move Toward Default (1)

China Vanke Co. is preparing a debt restructuring plan at the request of authorities, people familiar with the matter said, pushing one of the country’s largest real estate developers closer to default.

Vanke, one of the few major Chinese property companies to avoid a debt failure so far, was recently asked by authorities to accelerate its overhaul and submit the plan as soon as possible, according to the people, who asked not to be identified discussing private matters. Normally a restructuring would lead to suspension of debt payments and result in a default.

The developer has faced mounting strains ...