Jia Yuetings application for personal bankruptcy? FF Response: Handled by the Domestic Debt Group

 Jia Yuetings application for personal bankruptcy? FF Response: Handled by the Domestic Debt Group

Author: Kang Yin, Securities Times

Jia Yueting, who has devoted himself to car building in the United States, has new news.

According to media reports, a source close to Jia Yuetings creditors disclosed that he had just received a document on his own initiative to apply for personal bankruptcy restructuring in American courts. 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 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.

In response to the news that Le Video founder Jia Yueting applied for bankruptcy restructuring, the FF official response media created by Jia Yueting said that Jia Yuetings personal debt problem was handled by the domestic debt group. There is not much information on FF at present.

Jia Yueting, who had promised to be responsible to the end, flew to the United States in July 2017 and said that he would return home next week. Investors have not seen a return date yet. After going to the United States to build cars, after breaking with Evergrande, Jia Yueting resigned as FF CEO in September this year and became CPUO (Chief Product and User Officer).

Jia Yuetings latest microblog is still on September 3. The reason why I gave up everything is to make FF work, pay off the remaining guaranteed debts as soon as possible, and realize the dream of transforming the automobile industry.

Lexus Holdings is under the flag of Jia Yueting. At present, the domestic debt problem of Jia Yueting is mainly handled by the Lexus Holding Debt Group.

On September 3 this year, Faraday Future (FF) announced the appointment of Bi Fukang as the global CEO, while Jia Yueting will resign as the former CEO and assume CPUO.

According to FF official website, Bifukang is an expert in electric vehicles. He has not only served in international brands, but also established electric vehicle brands. In the short term, he will lead the team to prepare for the production of the first ultra-luxury intelligent Internet new species FF91 electric vehicle and complete the final development of the next large-scale production of the luxury model FF81 intelligent electric vehicle.

It is reported that since the outbreak of the fund crisis in November 2016, Jia Yueting has been repaying debts through asset disposal and other means. After resigning as CEO, Jia Yueting said that he would solve the remaining personal guaranteed debt problem as soon as possible. Since the financial crisis broke out in November 2016, Jia Yueting has repaid $3 billion (about 21 billion RMB) of debt. FF said that in order to solve the debt problem as soon as possible, Jia Yueting also set up a debt repayment trust fund.

With regard to Jia Yuetings application for personal bankruptcy restructuring in the United States, some creditors said in a surging interview that after completing the scheme of personal bankruptcy restructuring and creditor trust, Jia Yueting had solved the personal debt problem, and could continue to promote and realize the maximum value of FF equity assets and creditor trust assets as FF founder and CPUO, thus enabling creditors to pass the trust. The value-added assets achieve the goal of repayment.

In fact, Jia Yuetings debt lawsuits are still ongoing. Only recently did Minsheng Trust agree to terminate the execution procedure for Lexin Holdings and Jia Yuetings 575 million creditors rights.

According to the judgment issued recently by the Beijing court, the total amount of money obtained from the disposal of the shares held by Jia Yueting (29.78 million shares) and the deduction of the funds account under Jia Yuetings name totals 73.04 million yuan, and has applied for the implementation of the Peoples Having Trust. Beijing No. 3 Intermediate Peoples Court said that the listing of shares in CTV has been suspended, and the executed person has no property to execute for the time being. The applicant approved the courts property investigation results. The applicant agrees to terminate this execution procedure in accordance with the law.

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 final bargaining chip for its reversal.

According to the terms of the joint venture agreement, the ninth city will inject up to $600 million of capital into the joint venture company in three equal phases. FF will provide relevant property rights and resources to the joint venture company, and will grant the joint venture company the exclusive production, marketing and sales rights of V9, a brand new model of FF, and other designated models in China. Both sides will inject capital and property rights resources after the relevant conditions are met.

But until Jia Yueting resigned as FF CEO on September 3, FFs electric car still had little action.

On September 20, a news from FF Guanwei brought FF financing and mass production signals back to the public. The latest financing, IPO and product delivery strategic plan of FF91 was announced at the 919 Futurist Day in 2019. It is expected that the volume delivery of FF91 will be realized within nine months after the success of financing. FF said that when the IPO is completed within 12 to 15 months, the demand for capital at this stage will also drop sharply from the original estimated $2 billion to $850 million.

Source: Responsible Editor of Securities Times: Qiao Junjie_NBJ11279