(Bloomberg) — China Vanke Co. is in talks with banks on a debt swap that would help the cash-strapped developer stave off its first-ever bond default, according to people familiar with the matter.
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Vankes major creditor banks are considering a plan to swap bond holdings worth tens of billions of yuan in principal into secured debt, the people said, asking not to be identified discussing a private matter. The swap would help Chinas second-largest real estate company avoid a public default while giving banks collateral to protect against any potential losses.
The talks, coordinated by Chinas financial regulators and the local government of Shenzhen, are ongoing and the plan is subject to change, the people said. V…
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