PWC Resigns as Auditor for Evergrande
Exhange filing showed the accounting firm PWC resigns sending its official resignation letter to Evergrande Monday.
Chinese property developer Evergrande released a statement that global accounting firm PWC had resigned as its auditor, citing diverging views on the company’s 2021 financial statements.
An exchange filing said the resignation letter was sent to the Evergrande board on Monday. Possibly complicating its recent negotiations with investors for updated terms in restructuring proposals.
Evergrande, which has $300 billion in liabilities, including $20 billion owed to international investors. Moreover, they’ve repeatedly missed deadlines to provide a restructuring plan. The company has been meeting investors providing a progress report since last week in Hong Kong
PWC and Evergrande are in disagreement over the timing and scope of an assessment on the company’s “implications of the relevant disclosure,” with PWC stating that Evergrande failed to settle certain loans and other liabilities by the agreed upon date. In addition, PwC was not given details on an investigation conducted by an independent committee regarding an undisclosed deposit pledge related to the company’s electric vehicle unit, Evergrande New Energy Vehicle.
This will obviously have some serious implications for China and the Global Economy as a whole. However, the immediate response will likely be overshadowed by the release of Chinas release of its 2022 GDP.
Evergrande said it would appoint Prism as its new auditor until it concludes the next annual meeting.