The property developer was urged in September to negotiate a debt restructuring agreement by a group of international creditors with combined 75% ownership of the 2026 unsecured convertible bond.

A smaller group of bondholders is now discussing the possible issue of a so-called acceleration notice, separate sources said.

Acceleration clauses are customary in debt agreements, which provide for creditors' claims to be rendered due and payable once a triggering event has occurred.

The group collectively owns more than 25% of the bond and includes U.S. and Hong Kong-based hedge funds, according to a bondholder who declined to be identified discussing information not publicly disclosed.

No Va Land did not comment on whether a board meeting had been called but said in a statement to Reuters that it was striving to accommodate bondholders "within the company's resources... given the current difficult market context and our limited liquidity".

The Ho Chi Minh City-listed company has seen its shares plunge by more than 80% over the past year. The country's real estate sector has been struggling for months amid a government crackdown on corruption as well as due to stricter rules on corporate bond issuance that led to a credit crunch.

The market value of the convertible bond is now at around $90 million, less than one-third of its original value.

No Va Land has been conducting negotiations with multiple creditors and has struck deals with some.

U.S. fund Warburg Pincus, which led a consortium that invested $250 million in the company, agreed to convert $200 million of that into shares of No Va Land subsidiaries, a source has previously said.

Last November, Citigroup converted five convertible bonds worth $1 million into around 271,000 shares of No Va Land with a 85,000 dong conversion price, six times higher than No Va Land's current share price.

($1 = 24,560.0000 dong)

(Reporting by Phuong Nguyen and Francesco Guarascio @fraguarascio; Editing by Edwina Gibbs)

By Phuong Nguyen and Francesco Guarascio