A group of bondholders has threatened to sue Evergrande, the world's most indebted company, with around $300bn in total liabilities.
A source directly involved with the situation reportedly said plans for legal action were already prepared. They said investors felt they had "no choice" but to take Evergrande to court after this latest revelation.
The debt investors - said to include Saba Capital, Redwood Capital Management and Ashmore - met on Tuesday and instructed lawyers to carry out the legal analysis needed to decide whether to take action against Evergrande.
Chinese policymakers faced with 'moral dilemma' to avoid property crisis contagion
Evergrande has delayed publishing its annual results following what it called "drastic changes" in the company's prospects, while also keeping investors awaiting payment from the firm as to how the $2.1bn in deposits came to be seized by banks.
The property developer said it had launched an investigation as to how the banks claimed the cash, after its property services unit found the cash missing from its accounts when it was preparing its accounts.
China's real estate crisis intensifies as Shimao Group defaults on loan - reports
Evergrande has promised investors that it will reveal debt restructuring plans by the end of this July, stating that audit work would not be completed by the 31 March deadline.
The company - which defaulted on $22.7bn worth of overseas debt in December - has also pledged to "further enhance communications".
Fitch Ratings declared Evergrande to be in default last December following missed payments on interest owed on two dollar-denominated bonds. International bondholders in the failing real estate business, which has seen the Chinese government scramble in a bid to contain its ongoing real estate crisis, threatened legal action against Evergrande earlier this year due to a lack of engagement from the company despite the vast quantities of money it owes.
But Evergrande's is not an isolated case. China's real estate debt problem is endemic. Other Chinese property companies like Shimao Holdings also struggle to pay their dues. Meanwhile, a number of other real estate companies in the Asian superpower have announced they will not be able to deliver their financial results on time.