Evergrande Liquidation Law Firm Probing PwC For Fraud

Lawyers appointed by the liquidators of China Evergrande Group are investigating the company's service providers, including its former auditor PricewaterhouseCoopers (PwC), to potentially recoup losses for creditors.

Evergrande, once China's largest property developer, was ordered to be liquidated by a Hong Kong court in January after failing to deliver a restructuring plan for its $23 billion offshore debt in default. I Photo: Dinkun Chen Wikimedia Commons

Evergrande, once China's largest property developer, was ordered to be liquidated by a Hong Kong court in January after failing to deliver a restructuring plan for its $23 billion offshore debt in default, Xie Yu and Scott Murdoch reported for Reuters.

Hong Kong-based law firm Karas So is working with court-appointed liquidators Tiffany Wong and Eddie Middleton from Alvarez and Marsal (A&M) as part of the liquidation process.

This common move in liquidation cases indicates initial steps towards the winding-up of Evergrande, which has more than $300 billion in liabilities. The liquidation could take over a decade to complete, with lawyers looking for evidence of wrongdoing and negligence that led to the default.