Evergrande Liquidators Take Legal Action Against PwC
Lawyers for the liquidators initiated the legal process in March against PwC Hong Kong and the firm's mainland China arm, PwC Zhong Tian.
The move comes as part of the ongoing efforts to recover assets and determine responsibilities following the collapse of China Evergrande Group, one of the country's largest property developers.
Evergrande has been grappling with a severe debt crisis for several years, with liabilities exceeding $300 billion. The company defaulted on several bond payments and struggled to complete construction projects amid a broader downturn in China's real estate market.
In March, liquidators for Evergrande launched a formal investigation into the company's finances and operations. The legal action against PwC is part of this investigation, with liquidators seeking to determine the role of the auditing firm in the company's collapse.
PwC has stated that it will "vigorously defend" itself against the allegations. The firm has maintained that it conducted its audits in accordance with professional standards and applicable regulations.
The legal proceedings against PwC are expected to be complex and lengthy. The outcome of the case could have significant implications for the firm's reputation and the broader auditing industry in China.
The legal action by Evergrande liquidators highlights the ongoing challenges facing the Chinese property sector and the efforts to address the country's mounting debt problem. The case serves as a reminder of the importance of transparency and accountability in corporate governance.
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