Evergrande liquidators challenge SFC's settlement with PwC

AI-summarized · Neutrality-checked

Liquidators for the China Evergrande Group initiated a judicial review in the Hong Kong High Court to challenge a HK$1 billion (US$128 million) settlement between the Securities and Futures Commission (SFC) and PwC Hong Kong regarding an auditing scandal. The liquidators argued the regulator abused its power by forcing the payment through the threat of legal action, effectively circumventing judicial oversight. In response, the SFC maintained it possessed broad authority under the Securities and Futures Ordinance to settle disciplinary actions and accused the liquidators of objecting because minority shareholders received payment priority.

Consequences

The High Court, presided over by Mr. Justice Russell Coleman, has reserved judgment on the matter. The outcome will determine whether the SFC’s settlement agreement with PwC remains in effect or is quashed, impacting the distribution of funds between creditors and minority shareholders.

Sources

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