That was confirmed to Reuters by two sources.
This rare move by a foreign firm comes amid rising credit defaults and China's deepening property sector crisis.
Shanghai-based Shimao, which specializes in residential complexes and hotels, is among the many Chinese developers that have defaulted on offshore bonds.
That's after it missed the interest and principal payment for a $1 billion offshore bond in July, 2022.
After that missed payment, its entire $11.7 billion worth of offshore debt is deemed to be in default.
Once a top 20 developer in China, Shimao presented its offshore debt restructuring terms to creditors in December last year after 18 months of negotiations with them.
Sources said the German bank, one of Shimao's creditors, is looking to file the petition this month after it found these debt restructuring terms unacceptable.
Deutsche Bank declined to comment and Shimao did not respond to Reuters queries.
If finalized, Deutsche Bank's move marks a rare response from a foreign financial firm to the Chinese real estate sector, which slipped into a debt crisis in 2021.
