Real estate developer China Evergrande said on Monday that PricewaterhouseCoopers (PwC), its auditor, had resigned over disagreements over the timeline and scope of work surrounding the status for the 2021 fiscal year.
PwC is also the firm responsible for the independent audit of the Americanas retailer, which last week announced an accounting deficit of R$ 20 billion.
Once China’s biggest developer, Evergrande is now at the center of the country’s real estate crisis.
Its $22.7 billion offshore debt, including loans and private bonds, is considered in default after the company defaulted late last year.
In its letter, PwC noted that it had not received information on certain material matters relating to the group’s 2021 consolidated financial statements.
Evergrande, which has struggled to raise funds to pay off creditors, is in the midst of a debt restructuring process as stakeholders await the completion of its audited 2021 balance sheet.
PwC also signaled that the group had not settled certain interest-bearing liabilities due in 2021, adding that it had not received relevant details about the investigation conducted by an independent committee.
Certain cash flow projections for at least 12 months from January 2022, including the realizable value of properties under development and completed properties held for sale as of December 31, 2021, were not disclosed, PwC said.
Evergrande has decided to appoint Prism Hong Kong and Shanghai as the new auditor, considering the recommendation of the company’s audit committee.
Source: CNN Brasil
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