Guangzhou Kailong Faces Bankruptcy in the Wake of China’s Property Crisis and Evergrande's Liquidation
Overview of Guangzhou Kailong's Bankruptcy
A bankruptcy filing against Guangzhou Kailong, an indirect subsidiary of the beleaguered China Evergrande Corporation, has been officially accepted by a mainland China court. The application for bankruptcy liquidation was acknowledged by an intermediate court in Guangzhou on August 9, highlighting the ongoing ramifications of the Evergrande crisis.
Details on Liquidation Proceedings
On November 14, the court is set to convene a meeting with Guangzhou Kailong's first creditors. Creditors must declare their claims to the bankruptcy administrator before November 7. The liquidators noted modest asset realisations but cautioned about the company’s limited liquidity and resources.
Concerns Surrounding Evergrande's Future
Trading of Evergrande's shares has been suspended since January 29 as liquidators express skepticism about any restructuring plan that could revive share trading without new substantial investment. The company's mounting liabilities and past infractions increasingly cloud its operational future.
Legal Actions Against PwC and Further Investigations
Liquidators have initiated legal actions against PwC and its mainland unit regarding alleged negligence in audit work. China’s Ministry of Finance is now cooperating with Hong Kong regulators to investigate PwC's audit practices, intensifying scrutiny of Evergrande’s financial management.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.