Updated
Updated · Bloomberg · Jun 16
Evergrande Liquidators Seek Review of PwC HK's HK$1 Billion Compensation Deal
Updated
Updated · Bloomberg · Jun 16

Evergrande Liquidators Seek Review of PwC HK's HK$1 Billion Compensation Deal

3 articles · Updated · Bloomberg · Jun 16

Summary

  • Evergrande’s liquidators are seeking a judicial review of a HK$1 billion ($127.6 million) shareholder compensation arrangement tied to PwC Hong Kong.
  • The deal was struck in April between PwC’s Hong Kong affiliate and the Securities and Futures Commission to settle investigations into the firm’s audit work for China Evergrande.
  • That April regulatory action also brought a separate HK$300 million fine from Hong Kong’s Accounting and Financial Reporting Council, widening the fallout from PwC’s Evergrande audits.

Insights

With PwC facing billions in penalties, who gets paid first: Evergrande's creditors or the shareholders misled by audits?
Can Evergrande's liquidators legally block a regulator's deal to reclaim $127M from auditor PwC for creditors?