Foreign media: Jia Yueting announces his application for personal bankruptcy and restructuring after buying a $3 million mansion

On October 31st, Jia Yueting, founder of electric car start-up Faraday Future, bought a new $3 million ($21.12 million) mansion in August, according to foreign media reports.

外媒:贾跃亭宣布申请个人破产重组前买300万美元豪宅

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The 3,300-square-foot mansion is located on the hill of Los Angeles’ Palos Verdes Peninsula, not far from the seaside mansion he already owns.

In October, FF announced that farday Future founder and CPUO Jia Yueting had filed for personal bankruptcy reorganization (Chapter 11) in the United States and had set up a creditor trust controlled and managed by the creditor committee and trust trustees, after the completion of the program. Mr. Jia will transfer all of his stake in Smart King Ltd. to a creditor trust fund to better protect creditors’ interests and repay their debts.

In addition, foreign media reports have lawyers that Jia Yueting’s personal bankruptcy reorganization is false, disguised (sham), they believe that Jia Yueting to creditors to hide their property.

People familiar with the matter also revealed that Jia Yueting is now on an L-1 visa. But the visa is conditional on the company’s well-functioning company. That is, If THE FF goes bankrupt, or if his position at FF is not guaranteed, Jia Yueting may be forced to return to China.

LeEco also has different views on the statement issued by Jia Yueting’s debt processing team on Mr. Jia Yueting’s personal bankruptcy reorganization and the establishment of a creditor’s trust.

“More than 90% of Mr. Jia’s debt is debt secured on behalf of the Company, and since all Jia Yueting and LeEco’s assets and bank operating accounts have been frozen by a creditor (far more than the total amount of debt) have directly prevented the company from operating properly until the collapse of LeEco, To date, Mr. Jia has paid more than $3 billion in debt to the company, with a total debt outstanding of approximately $3.6 billion, less the secured debt that has been frozen for disposal and convertible shares, with a net debt of approximately $2 billion. “

LeEco.com’s statement

Since the start of the business crisis in 2017, Mr. Jia has repeatedly pledged to repay it, but there is no guarantee that the debt will be done.

On January 2, 2018, and August 21, 2018, LeEco disclosed the Announcement on The Debt-related Transactions of Related Party Companies, and the Announcement on progress in resolving the debt problems of the non-listed system. According to the announcement, through the unremitting efforts of the then management, LeEco and major shareholders and their related parties offset the debtofs of listed companies by means of debt and debt transfer by means of debt.

LeEco has been in talks with major shareholders and their affiliates since August 2018, but as the settlement is settled and executed depending on the willingness and actual execution of the majority shareholder, LeEco has made no progress in dealing with the debts of major shareholders and their affiliates. The debt processing team of the major shareholder and its related parties did not come up with a full and substantively executable treatment plan, and LeEco did not receive any cash for the debt settlement.

All the data released in the Statement on Mr. Jia Yueting’s Personal Bankruptcy Reorganization and the Establishment of a Creditor’s Trust are the results of the single-sided statistical results of Jia Yueting’s Debt Processing Group, and the results of the treatment of debts of LeEco and major shareholders and their related parties have been publicly disclosed.

LeTV also said that Jia Yueting, as the company’s actual controller, should assume the responsibility of the major shareholders as soon as possible: to come up with a practical solution to the problem of related party debt, as soon as possible to ease the pressure of public opinion on LeTV, to help LeTV restore its reputation, improve the market environment of LeECO, and maintain LeECO’s continued operating capacity To assist the company in actively responding to the case of the breach of the guarantee of LeTv and to implement the recovery of the relevant responsible person, fulfill the commitment to provide 5.7 billion yuan of loans to LeTV.com, relieve the cash flow pressure of LeEco.

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