China Evergrande’s auditor PricewaterhouseCoopers (PwC) resigned from its role as the developer’s auditor on disagreements over the timeline and scope of work. The disagreements included Evergrande’s status as a going concern and also lack of information on material matters regarding its consolidated financial statements for the year 2021. PwC also said that Evergrande had not settled certain interest-bearing payments that were due on their maturity dates in 2021. Some of the other issues included a missing piece of information regarding an RMB 13.4bn ($2bn) deposit pledge guarantee of Evergrande Property Services Group, a subsidiary. Evergrande has now resolved to appoint Prism Hong Kong and Shanghai Ltd as its new auditors.
Evergrande’s dollar bonds were trading at over 10 cents on the dollar.
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