Updated
Updated · Bloomberg · Jun 17
SFC Advances HK$1 Billion Evergrande Payout Despite Liquidators' Legal Challenge
Updated
Updated · Bloomberg · Jun 17

SFC Advances HK$1 Billion Evergrande Payout Despite Liquidators' Legal Challenge

3 articles · Updated · Bloomberg · Jun 17

Summary

  • Hong Kong’s Securities and Futures Commission said it will press ahead with detailed provisions of a HK$1 billion ($128 million) plan to compensate minority shareholders of China Evergrande Group.
  • The move keeps the restitution process on track despite a legal challenge from Evergrande’s liquidators, who sought judicial review of the arrangement.
  • That compensation deal was struck in April with PwC Hong Kong to settle SFC investigations into the auditor’s work on Evergrande.
  • The case extends the fallout from Evergrande’s collapse, with shareholder redress now moving forward even as related court and regulatory actions continue in Hong Kong.

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?