China Vanke (HKG:2202, SHE:000002) is drawing up a debt restructuring plan at the request of authorities, a move that would push one of the country's largest property developers closer to default, Bloomberg News reported, citing people familiar with the matter.

Authorities recently asked the developer to accelerate its overhaul and submit a plan as soon as possible, the report said.

A restructuring would typically involve a suspension of debt payments and could trigger a default, Bloomberg wrote.

Vanke has nearly $50 billion in interest-bearing liabilities, and any restructuring would rank among the largest ever in China's property sector, according to the report.

The situation remains subject to change, with Beijing's approval required before any plan is put to creditors, the report added.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)