Daily Management Review

FT: Evergrande’s liquidators may sue PwC


The Financial Times, citing its own sources, stated that the liquidators of China’s Evergrande, one of the country's biggest real estate developers, are getting ready for a potential court battle with auditor PricewaterhouseCoopers (PwC).

Dinkun Chen
Dinkun Chen
The sources clarified that this does not imply that a lawsuit will be brought or that the property developer's liquidators have any proof of violations on the side of the auditor.

Following months of hearings on the Evergrande issue, the Hong Kong court did ultimately decide to liquidate the developer at the end of January. The company, which has been in major financial distress since autumn 2021 and has made multiple defaults, was accused of not having submitted a clear restructuring plan.

Evergrande Group is a $240 billion real estate conglomerate and one of the biggest real estate companies in China that owes more than $300 billion in debt. Top Shine, an investment group based in Hong Kong, filed a lawsuit in June 2022 seeking the forced liquidation of Evergrande on the grounds that the developer had broken the terms of their agreement by refusing to buy back the shares of Fangchebao, one of its units. Evergrande's creditors joined the legal action later.

source: ft.com