Jia Yueting intends to apply for personal bankruptcy restructuring to transfer all assets to creditors

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 Jia Yueting intends to apply for personal bankruptcy restructuring to transfer all assets to creditors


On October 11, a source close to Jia Yuetings creditors told reporters that he had just received a document from a U.S. court filing for Chapter 11 Bankruptcy Reorganization.

The document shows that Jia Yueting will transfer all assets to creditors through creditor trust, which is controlled and managed by creditor Committee and trustee. This also means that creditors will get all of Jia Yuetangs assets and earnings rights ahead of time, and Jia Yuetang will no longer hold any equity in Faraday Future (FF), an electric car maker.

For the above statement, FF has not been officially disclosed, and surging journalists have not been able to contact more Jia Yueting creditors for comment. At present, there is no news that Jia Yuetings creditor Committee has been established publicly.

However, according to people involved in Lexin Holdings Debt Group, as far as they know, Jia Yueting has been planning relevant debt repayment schemes in order to solve the personal debt problem thoroughly and make FF.

Jia Yuetings visual china map

Jia Yueting applies for personal bankruptcy reorganization voluntarily

Lexus Holdings is under the flag of Jia Yueting. At present, Jia Yuetings domestic debt problem is mainly handled by the LETV holding debt team.

As for Jia Yuetings application for personal bankruptcy and reorganization in the United States, a person from LETV holding debt group said: although he is not clear about the specific progress, as far as I know, Mr. Jia Yueting has been planning relevant debt repayment plans before. The reason why he is willing to make such a huge personal sacrifice and give up all personal assets to transfer to creditors is to fulfill his responsibilities to the end and thoroughly understand Resolve the personal debt problem and make FF.

According to the person, Jia Yuetings personal debt is very small, a large amount of debt guaranteed by individuals for the company, and has repaid more than 20 billion yuan. Earlier, people close to FF said that Jia Yueting also planned to set up a personal debt repayment trust fund as a domestic debt repayment fund.

At present, it is not clear how much voice Jia Yueting will have in FF if the aforementioned bankruptcy application falls.

According to reports, under the legal framework of the United States, there are two ways: Chapter 7 and Chapter 11. Jia Yueting applied for bankruptcy restructuring (Chapter11).

Chapter11 refers to the situation that the enterprise or individual is insolvent at present, and the law allows the debtor to propose a reorganization plan to the creditor to defer repayment in a way of asset protection.

Chapter 7 means that a company or an individual declares bankruptcy and is taken over by a liquidation group, which liquidates, evaluates, processes and distributes the assets of the company or individual.

Earlier, media reports said that some creditors tried to obtain the rights of their claims by freezing and auctioning the FF shares held by Jia Yueting.

The reporter inquired about this matter to the above-mentioned people close to Jia Yuetings creditors, who said, This method is extremely unfair to the vast majority of creditors, other creditors are not even able to get repayment opportunities, and all creditors hope to maximize the value of assets after FF success and get full debt repayment. He said that this should be Jia Yuetings application for bankruptcy restructuring of the inherent secret, but also for other creditors to be treated equally.

Creditors will advance the acquisition of all personal assets and earnings rights of Jia Yueting

In addition, according to people familiar with the matter, Jia Yueting will take the initiative to provide additional special protection to creditors after submitting personal bankruptcy reorganization. Among them, all domestic creditors still retain the right to dispose of the frozen assets of Jia Yuetang and other debtors; former Lexin related enterprises and other original debtors will continue to fulfill their debt repayment obligations; compared with the original claim to Jia Yuetang through the security procedure, creditors through the creditor trust now have obtained all the assets and income rights of Jia Yuetang in advance. Creditors will also have equal rights and the right to pay their debts in full in the future.

Creditor trust has enhanced our confidence in full debt repayment by getting all of Jia Yuetangs personal assets and earnings rights in advance, as opposed to only asking Jia Yuetang for debt repayment through security rights, said Jia Yuetangs creditors. After Jia Yuetangs crisis, I did not pursue it vigorously. On the one hand, I always recognized and supported his dream, on the other hand. Face, I have also experienced the pains of entrepreneurship, and know that entrepreneurship is not easy.

Since his arrival in the United States in July 2017, Jia Yuetings personal energy has mainly focused on the development of Faradays future (FF), which has become the backing of Jia Yuetings reversal. The creditor trust controlled by Jia Yuetings personal debt creditor is closely related to FFs asset value. In September, FF announced the appointment of BYT founder Bi Fukang as CEO of the world to replace Jia Yueting, founder of FF who resigned from the post. Jia Yueting will be transferred to the CPU of FF (Chief Product and User Officer).

According to the above creditors, after completing the plan of personal bankruptcy reorganization and creditor trust, Jia Yueting, who has solved the problem of personal debt, will continue to promote and realize the maximization of the value of FF equity assets and creditor trust assets as the founder and cpuo of FF, so as to enable the creditors to achieve the goal of repayment through the value-added of trust assets.

Personal Bankruptcy Policy of Water Testing in Some Cities of China

It is worth mentioning that, according to the current legal requirements of China, bankruptcy liquidation or bankruptcy reorganization are only for enterprise entities, and the relevant legal formulation of individual bankruptcy liquidation and individual bankruptcy reorganization is still in progress. In July 2019, the National Development and Reform Commission (NDRC) and other thirteen departments jointly issued the Reform Plan for Accelerating and Improving the Exit System of Market Subjects, proposing to study and establish an individual bankruptcy system.

(function () {(window. slotbydup = window. slotbydup | []). push ({id:6374560, container:ssp_6374560, size:300,250, display:inlay-fix, async: true});} (); on the morning of October 9, Wenzhou City, Zhejiang Province, reported the first case of centralized liquidation of personal debt with substantive functions of personal bankruptcy and equivalent procedures. In this case, Cai, the debtor, who is a shareholder of a bankrupt enterprise in Wenzhou, is jointly and severally liable for the debts of more than 2.14 million yuan of the bankrupt enterprise according to the effective judgment document. Because Cai Mou is really unable to pay off huge debts. Finally, Cai Mou put forward a settlement ratio of 1.5% that is more than 32,000 yuan, which was approved by the court within 18 months. Compared with the personal bankruptcy reorganization (Chapter 11) applied by Jia Yueting, Cai obtained the opportunity of low debt repayment in the way of similar personal bankruptcy liquidation (Chapter 7). This case also means that the relevant legal system is being explored in China. Source: Liu Yuxin_NBJS7825

On the morning of October 9, Wenzhou City, Zhejiang Province, reported the first case of centralized liquidation of personal debts with substantive functions of personal bankruptcy and equivalent procedures. In this case, the debtor, Cai Mou, is a shareholder of a bankrupt enterprise in Wenzhou. The valid judgment documents confirm that the debtor should bear joint and several liabilities for the debts of the bankrupt enterprise of more than 2.14 million yuan. Because Cai Mou is really unable to pay off huge debts. Finally, Cai Mou put forward a settlement ratio of 1.5% that is more than 32,000 yuan, which was approved by the court within 18 months.

Compared with the personal bankruptcy reorganization (Chapter 11) applied by Jia Yueting, Cai Mou has obtained the opportunity of low debt repayment by the way similar to the personal bankruptcy liquidation (Chapter 7). This case also means that the relevant legal system is being explored in China.