(Bloomberg) — China Evergrande Group’s debt load is far bigger than earlier estimated, amounting to HK$350 billion ($45 billion) as any “holistic” restructuring of the Chinese real estate firm is deemed out of reach, according to the developer’s court-appointed liquidators.

The company is facing 187 debt claims, with the total amount far exceeding the $27.5 billion of liabilities disclosed in its financial statement in December 2022, the liquidators said in a “progress report” issued on Tuesday. The new figure isn’t to be taken as final since additional claims could emerge and all are subject to formal review.

Since liquidators Edward Middleton and Tiffany Wong, both of Alvarez & Marsal Inc., were appointed in January 2024, the duo have been sifting through files and unearthing arcane corporate structures to help creditors recoup money. That has included assuming control of more than 100 companies related to Evergrande that collectively hold a value of HK$27 billion, they said.

“The Liquidators are not at this time able to estimate the amounts that may ultimately be realised from these entities,” they said.

It has been a monumental task as Evergrande comprises 3,000 legal entities in multiple jurisdictions, as well as about 1,300 projects under development in more than 280 cities, according to the liquidators. China Evergrande first defaulted in 2021, sending shock-waves through the nation’s real estate market that is still seeking to recover.  

There were also 3,000 projects under the Hong Kong-listed property management operation Evergrande Property Services Group Ltd. Creditors are especially paying close attention to the handling of this arm, since it “represents a very substantial potential source of value” and are being given “the highest priority” in terms of attention, the liquidators said.  

Even though it’s not statutory required, the liquidators decided to issue a progress report on Tuesday due to “wide interest” of the liquidation process, they said.  

The liquidators said the realization of assets has so far been “modest” at $255 million. Some $167 million has been “upstreamed” and linked to Evergrande, however, stakeholders shouldn’t assume that all of the money will be available to the company due to complex ownership structures, they said. 

Separately, China Evergrande New Energy Vehicle Group Ltd., whose unit is also facing a liquidation petition from a creditor, has been looking for strategic investors. The EV maker had goals to take on Tesla Inc. and once had a market value that topped Ford Motor Co. before being swept up in the developer’s debt crisis. To date, liquidators have received no expressions of interest, after one previous proposal fell through. 

The liquidators also have to contend with complexities onshore. It has been challenging for offshore investors to get their hands on assets that sit in the mainland, which has a separate jurisdiction from Hong Kong.   

Last year, a mainland court accepted a liquidation application filed against one of Evergrande’s major units onshore Guangzhou Kailong Real Estate Co. 

Kailong is fully owned by Evergrande and has a stake of around 60% in Hengda Real Estate, the developer’s main property operation onshore. 

Last March, Chinese regulators accused Hengda Real Estate of inflating more than 560 billion yuan ($78 billion) of revenue by recognizing sales in advance, an alleged fraud that dwarfs that of Luckin Coffee Inc. and Enron Corp. Evergrande was fined 4.18 billion yuan, leaving even less money for offshore creditors. 

The liquidators said they have been made aware of hundreds of credit actions including the onshore bankruptcy proceedings of Guangzhou Kailong. 

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