Lawyers appointed by the liquidators of China Evergrande Group are investigating some of the property developer’s service providers including its former auditor PricewaterhouseCoopers, to potentially recoup losses for creditors, three sources said.
The move, which is common in liquidation cases, indicates initial steps being taken toward liquidation of the world’s most indebted property developer with more than $300-billion of total liabilities.Evergrande’s liquidation could take more than a decade to be completed, according to some offshore investors, and become a blueprint for future major Chinese corporate winding up processes.
Apart from PwC, Karas So has also been examining the roles played by other institutions that provided financial and other services to Evergrande, said one of the sources.It is not clear when Karas So and A&M will take actions, if any, after the completion of the investigation.