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Once China’s top-selling developer, Evergrande is now at the centre of the country’s property crisis. Its $22.7 billion of offshore debt, including loans and private bonds, is deemed to be in default after it missed payments late last year.
In its resignation letter, PwC noted that it had not received information on certain material matters surrounding the group’s consolidated financial statements for the year 2021.
Evergrande, which has been scrambling to raise funds to repay its creditors, is in the midst of a debt restructuring process in which stakeholders are awaiting the completion of its audited financial rundown for 2021.
PwC also flagged that the group had not settled certain interest-bearing liabilities that were due on their contractual maturity dates in 2021, adding that PwC was not provided with relevant details on the investigation conducted by an independent committee.
Certain cash-flow projections for not less than 12 months from January 2022, including the net realisable value of properties under development and completed properties held for sale as at Dec. 31, 2021 have not been disclosed, PwC said.
Evergrande has resolved to appoint Prism Hong Kong and Shanghai Ltd as the new auditor, taking into account the recommendation of the company’s audit committee.
Last week Reuters reported, citing sources, that the developer will hold a meeting with dollar bondholders to discuss its debt restructuring proposals.
