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 Yueting 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 Yueting Visual Chinese Data Map
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.
Regarding Jia Yuetings application for personal bankruptcy and reorganization in the United States, a person concerned with Lexin Holdings Debt Group said: Although it is not clear about the specific progress, as far as I know, Mr. Jia Yueting has been planning the relevant debt repayment plan before. The reason why he is willing to make such a huge personal sacrifice and abandon all personal assets transfer to creditors is to fulfill his duty to the end and thoroughly solve the problem. 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, there are two ways of bankruptcy liquidation (Chapter7) and bankruptcy reorganization (Chapter11) under the legal framework of the United States. 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 an enterprise or individual declares bankruptcy and is taken over by the liquidation team, 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
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 the asset value of FF. 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).
The above creditors believe that after the completion of the scheme of personal bankruptcy restructuring and creditor trust, Jia Yueting has solved the problem of personal debt. He will continue to promote and realize the maximum value of FF equity assets and creditor trust assets in the capacity of FF founder and CPUO, so that creditors can achieve the goal of repayment through the increment of trust assets.
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.
Source of this article: Peng Mei News Responsible Editor: Qiao Junyi_NBJ11279