I’m sure the political party and billionaires will fix or forge the numbers as usual. So a little setback..
ByIrina Anghel and Evelyn Yu+Follow
January 16, 2023 at 11:04 AM EST
China Evergrande Group said PwC has resigned as its auditor, adding to the pressure on the developer at the epicenter of China’s property crisis.
Evergrande’s board recommended the resignation of PwC after the two firms couldn’t “agree on the timetable and the scope of work in respect of the assessment on the group’s going concern basis,” as well as the “procedures required for the assets impairment assessment,” according to a regulatory filing Monday.
The disagreements mean the 2021 audited financial statements aren’t yet available, which is hindering progress on debt restructuring work, according to the statement.
In its Jan. 16 resignation letter to Evergrande’s audit committee and board, PwC noted it still hadn’t received information relating to “significant matters” of the 2021 audit, the filing said. That included cash flow forecasts, the net realizable value of the group’s properties under development and even the consolidated financial statements of the group.
Evergrande defaulted more than a year ago and its efforts to reach a solution with creditors is under close scrutiny with various deadlines having been missed. The company’s debt overhaul would be one of China’s biggest ever and carry broader implications for the country’s $58 trillion financial system.
A spokesperson for PwC declined to comment. A representative for Evergrande didn’t immediately respond to a request for comment.
Read More: Evergrande Plans First In-Person Meeting With Key Creditor Group
