To expand a bit more. At least in the SOPs that I wrote, is a loan declared default if a repayment of (interest and/or principal) has not been received after a certain cutoff (30+, 60+, 90+) or the company has been declared bankrupt, dead, or similar (hard trigger events) For the latter, this is why petitions like these matter: https://www.reuters.com/business/china-evergrande-faces-wind...