Jia Yuetings creditors have caught up with the United States: US$1.48 billion in equity and luxury homes have been frozen

 Jia Yuetings creditors have caught up with the United States: US$1.48 billion in equity and luxury homes have been frozen

Photo Source: Visual China

Since July 13, last year, when the word Return Next Week came out, creditors have been waiting for Jia Yuetang for 521 days. During this period, Jia Yuetings real estate in China was sealed up, bank deposits were frozen, and he was blacklisted as Lao Lai.

Nowadays, I dont know how many creditors are still waiting, but some people have caught up with the United States!

On December 13, California Central Court of Justice approved the application of the creditor Shanghai Lazy Finance Asset Management Company Limited, frozen 33% of Faraday Future (Faraday Future, FF) CEO Jia Yuetings stake in FF, and issued a temporary restraint order on four California luxury houses owned by Jia Yueting.

Jia Yuetings shares and luxury houses were temporarily frozen

According to documents issued by California Central Court, on December 10, Shanghai Lazy Assets Management Co., Ltd. (hereinafter referred to as Lazy Assets) filed an application for freezing Jia Yuetangs related assets with the court, but Jia Yuetang did not raise any objection.

Lazy Property Assets said that on December 2, 2016, Lexi Sports Culture Industry Development (Beijing) Co., Ltd. (hereinafter referred to as Lexi Sports) borrowed 50 million yuan from Lazy Property Assets and agreed to repay the principal in December. Jia Yueting and Lexi Holdings, as guarantors, should bear joint and several liabilities.

According to the loan agreement at that time, if Lexin Sports defaulted, it should pay an additional 0.05% interest every day. However, after paying two periods of interest, Jia Yueting and Lexus Holdings suspended repayment of the remaining principal and interest. Therefore, the lazy property submitted arbitration to the Beijing Arbitration Commission.

On January 22 this year, the Beijing Arbitration Commission ruled that Lexus Sports, Jia Yueting and Lexus Holdings should be repaid: (1) 50 million yuan loan; (2) repayment of interest since March 15, 2017, with an annual interest rate of 7.5%.

However, Jia Yueting did not express any willingness to repay in the near future. Therefore, the lazy property finally decided to apply for an award in the United States, requiring the court to approve the arbitration results previously made in China.

Daily economic journalists inquire Tian Eye Check found that lazy property is a wholly-owned subsidiary of Beijing Lazy Finance Information Technology Co., Ltd., but lazy property has no equity relationship with Lexus and Jia Yueting.

However, in August 2016, Beijing Lazy Finance Information Technology Co., Ltd. was responsible for the operation of the Lazy Finance Network which had won 180 million yuan of B-round financing led by Le Video Network and Junlian Capital. However, in May of the following year, Lazy Finance confirmed to the media that the ownership of Lazy Finance has been transferred.

Lazy property attorney said that in order to prevent Jia Yueting from transferring assets, he proposed to freeze the related assets. The assets applied for freezing include the FF shares held by Jia Yueting (33% of the total equity of FF) and the California mansion owned by Jia Yueting through Ocean View Drive, Inc.

Finally, the court partially approved the application for lazy property assets and issued a temporary restraining order for Jia Yuetings above assets. This means that before the final ruling, Jia Yueting can not transfer, hide, reduce or transfer assets in other ways.

Photo Source: Visual China

In August 2014, Jia Yueting personally registered a company named Ocean View Drive, Inc. Through the company, Jia Yueting purchased four luxury homes in California, 7 and 11 Margaret Street, 19 and 91.

The No. 7 mansion was purchased on August 29, 2014 for $7 million.

The purchase date of No. 11 is August 29, 2014, when the price was $4.5 million.

The purchase date of No. 19 is September 2015, and the price is $7.35 million.

The 91 luxury house was purchased on July 7, 2015. At that time, the land price was 5.58 million US dollars, and the cost of renovation was about 20.665 million US dollars. The total cost of purchasing the 91 luxury house was 7.573 million US dollars.

By June 2017, Jia Yueting pledged all four apartments in order to dream of car building.

At present, the total value of these four luxury houses is more than $20 million, while Jia Yuetings stake in FF is valued at $1.48 billion (based on the total value of Hengdas investment of $2 billion at the end of 2017). That is to say, Jia Yuetings assets frozen this time are worth more than $1.5 billion.

Yesterday (December 15), the daily economic news contacted FF, but as of the time of publication, no reply had been received.

Debtors are rushing abroad

There was no sign of Jia Yueting returning home, and the creditors were helpless. But now, several companies have recovered their debts overseas, and lazy assets are just one of them.

Recently, Kobre & Kim, a law firm entrusted by To-Win Capital, said on its official website that on December 5, the Eastern Caribbean Supreme Court ruled in support of Tao Yuns appeal to freeze Jia Yuetangs shares in FF through Jia Yuetang and offshore companies at different levels under his name. The court also allowed Taoyun Capital to enforce the award made by the Beijing Arbitration Commission.

Kobre & Kim said it was the first time that creditors had successfully frozen Jias overseas assets.

Taoyun Capital has previously participated in many projects of Le Video Department, including: Le Video Sports, Le Video Film Industry, Le Video Investment Management (Beijing) Co., Ltd. and Xing Le Investment Management (Tianjin) Partnership (Limited Partnership).

Last July, Lexuss online car-booking platform was easy to announce that through debt-to-equity swap, Taoyun Capital became easy to control shareholders.

Although Kobre & Kim posted an announcement on its official website, Lexin Holdings Debt Processing Group responded to the Securities Daily that Lexin Holdings Debt Processing Group and Jia Yueting, the guarantor of the debtor, had not received any debt lawsuits or related rulings from American courts on Taoyun Capital.

In addition, on September 5 this year, Shanghai Qicheng Yueming Investment Partnership (Limited Partnership) (hereinafter referred to as Qicheng Yueming) also applied to California Central Court for arbitration.

Qi Chengyue-ming said that in May this year, the China International Economic and Trade Arbitration Commission ruled that Lexin Holdings and Jia Yueting would repay Qicheng Yue-ming $100 million within five days, including the principal and interest of convertible bills and related litigation and arbitration costs.

However, the money Lexin Holdings and Jia Yueting have not been repaid, so they applied to the California Central Court for arbitration, hoping to enforce the ruling of the China International Economic and Trade Arbitration Commission in the United States. But the arbitration case has not yet been heard.

In addition, according to Jalopnik, an American technology media, in July this year, a company named Beijing MVC Consulting applied to California Eastern District Court for arbitration, hoping to recover Jia Yuetings arrears of $180,000. However, the Daily Economic Journalist did not find the relevant documents of the arbitration case.

Source: Daily Economic News Responsible Editor: Shi Jianlei_NBJ11331