This comes after the Chinese property developer missed a $400 million repayment on Tuesday, triggering a cross-default on all of its offshore bonds. Kaisa's total offshore debt is worth about $12 billion, only behind Evergrande in that respect.

The report says that Kaisa is expected to soon sign a NDA with Lazard, the adviser of a group of bondholders. The NDA is believed to lay the groundwork for further discussion on forbearance and financing solutions.

Considering the size of Kaisa's debt, it goes without saying this restructuring will be among the biggest in China.

Despite Fitch's downgrade earlier, be reminded that Kaisa has not declared a formal default yet.