China Evergrande liquidators seek review of PwC HK's $128 million settlement, Bloomberg News reports
- SFC's deal to compensate shareholders puts creditors at a disadvantage as the payout translates to less money left for liquidators to recover
China Evergrande’s liquidators are seeking a judicial review of a HK$1 billion ($127.67 million) shareholder compensation deal a regulator struck with PricewaterhouseCoopers’ (PwC) Hong Kong affiliate, Bloomberg News reported on Tuesday.
Bloomberg reported that the fund was part of an April agreement with the Securities and Futures Commission (SFC) to settle probes into PwC Hong Kong’s auditing work for the collapsed property developer.
Evergrande’s liquidators allege the SFC “lacks statutory authority to settle a market misconduct claim” against a non-regulated entity like PwC HK in the way it did, the Bloomberg report said, citing a court document.
SFC’s deal to compensate shareholders puts creditors at a disadvantage as the payout translates to less money left for liquidators to recover, Bloomberg added.
Evergrande did not immediately respond to a Reuters’ request for comment.
The company was the highest-profile casualty of China’s prolonged property crisis.
It began defaulting on some of its bonds in 2021 and collapsed with more than $300 billion in liabilities.
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