Jia Yuetings bankruptcy, reorganization and transition: Based on Jia Yuetings concession

category:Finance
 Jia Yuetings bankruptcy, reorganization and transition: Based on Jia Yuetings concession


Jia Yuetings debt handling group issued a statement saying that Jia Yueting has formally submitted a list of core terms of bankruptcy and reorganization to the Central District Court of California, the United States, which was jointly signed by Jia Yueting and the creditor Committee after several rounds of negotiation and agreement. This means that Jia Yuetings bankruptcy reorganization officially enters into the process of final scheme text confirmation, voting, and California court approval, and the new disclosure statement will also be submitted in the near future.

This is achieved on the basis of the following concessions made by Jia Yueting: before the debt repayment amount reaches a significant proportion, Jia Yueting no longer requires to cancel the Chinese guarantee; at the same time, the creditor continues to have the right to dispose of Jia Yuetings frozen or mortgaged assets in China; the creditor will obtain a maximum of $1 billion in excess of the total debt repayment according to the principle of cumulative ladder account splitting As a result, creditors can get more benefits than the original scheme.

Prior to the submission of the core terms list of bankruptcy and reorganization, the creditor Committee hired an independent third-party legal and financial institution to make a detailed investigation of Jia Yuetings relevant assets, which proved the authenticity of Jia Yuetings asset disclosure and FF asset value.

More importantly, after Jia Yuetings bankruptcy and reorganization case was transferred from the Delaware court to the Central District Court of California, the U.S. District 16 trust trustee Office (i.e. the current ustrustee) took the initiative to cancel the motion that the U.S. District 3 trustee Office (i.e. the former ustrustrustee) proposed to appoint Chapter 11 trustee to entrust Jia Yuetings assets, especially the dishonesty in the motion With this withdrawal, Rong also proved to be a misstatement made by the former ustrustee who was misled by malicious creditors.

Jia Yuetings debt processing team members said that Jia Yueting is very confident to work with all creditors to promote the completion of the bankruptcy reorganization as soon as possible, so as to remove the biggest obstacle of FFs business development in China and global equity financing, make every effort to maximize the value of FFs assets, and then protect the best interests of all creditors and thoroughly solve the debt problem, to the end.

Boycott repeatedly

Since the announcement of Jia Yuetings personal bankruptcy plan, there have been many obstacles, among which Shanghai Laicai asset management company (hereinafter referred to as Laicai) and Shanghai Qicheng Yueming investment partnership (hereinafter referred to as Qicheng) and their affiliated companies are the most serious.

Lazy money had first submitted an application to reject Jia Yuetings personal bankruptcy and reorganization case. In his application, lazy money said that if Jia Yuetings personal bankruptcy and reorganization could not be rejected, he would be required to transfer from the Delaware court to the California court. One of the reasons for laziness is that Jia Yuetings debt creditors are mainly located in China, while Jia Yuetings application for personal bankruptcy in the United States involves language problems. Later, Jia Yuetings personal restructuring plan was cancelled by Shanghai Qicheng Yueming investment partnership (hereinafter referred to as Qicheng) and its affiliated companies.

Speaking of these two companies, there are more or less economic disputes with LETV founded by Jia Yueting. According to the case information, in 2016, Laicai provided lesports with a loan of RMB 50 million and agreed to repay the principal in one time within 12 months. Jia Yueting and lesports holding, as guarantors, shall be jointly and severally liable. But lazy money received only two interest payments. Later, Laicai asset filed an arbitration with Beijing Arbitration Commission, but LETV refused to fulfill its obligation of repayment and stressed that the debt had been transferred to taoyun capital, but this claim was not supported by domestic courts. Qicheng and LETV holdings have a legal action, in which Jia Yueting is the respondent. In addition, the company is one of the five members of Jia Yuetings bankruptcy reorganization creditor Committee.

However, the application of Laicai and Qicheng was not supported by the court. In December last year, the Delaware bankruptcy court decided to officially approve Jia Yuetings personal bankruptcy and reorganization in the Central District Court of California, and rejected the motion of Shanghai Laicai, Qicheng and a few creditors to cancel the bankruptcy and reorganization plan, which would damage the common interests of all creditors.

According to the news released by Jia Yuetings debt handling group, lazy money recently submitted a motion to reject Jia Yuetings bankruptcy and reorganization case, which was not passed in the Delaware court. Jia Yueting hoped that the creditor Committee and many creditors would continue to oppose the motion of lazy money to reject the case.

Financing failed

Jia Yuetings application for bankruptcy reorganization is actually paving the way for FFs financing and auto production, but according to FF insiders, the new financing has not made substantial progress.

In September last year, Bifukang took over as FF Global CEO, whose main task was to accelerate the financing and the mass production listing of ff91. According to the plan, FF plans to complete round B financing in the first quarter of this year. According to reports, people close to FF said that the companys external financing is still moving forward steadily, and no substantive breakthrough has been made for the time being.

However, FF seems to have made some progress in business development. It is reported that FF has just reached a strategic cooperation agreement with a US company on powertrain technology output, the final agreement has not been formally signed, and the details of the cooperation have not yet been disclosed. This means that FFs tob business has been fully launched. In addition, there are several local governments competing for the landing right of FF China. At the end of last year, Bifukang flew to Beijing from the United States, and said that the company would accelerate the production plan of ff91 in China, and was cooperating with domestic automobile enterprises.

As of the publication, FF has not responded to the above rumors.

According to the plan previously announced by FF company, ff91 will be delivered to the first order user this year, with an annual production capacity of 10000 vehicles at the initial stage, and the largest expansion to an annual production capacity of 100000 vehicles according to the order situation. The price of ff91 model will be around $200000, while ff81 model produced on the same platform will adopt smaller size and shorter mileage, and obtain more sales through lower price. Ff81 is positioned similar to Tesla models and will be pre mass produced by the end of this year.

In the view of major general Ding, an industry and economic observer, there were too many debt disputes before Jia Yueting, and it was difficult for him to completely recover his personal image through bankruptcy and reorganization. For FF, in terms of financing, the overall positive is more than negative, but the uncertainty of the share transfer held by Jia Yueting will also have a certain negative impact on the future development of FF. In addition, when FF will be mass produced is still a problem. After the blowout in the past few years, the new energy vehicle market saw its first negative growth last year, which is a huge test for FF. In response to the markets query, Jia Yueting previously said that the auto industry is surrounded by public opinions, especially the lament of new car manufacturers. However, Tesla has become a global wreck, proving the huge potential of the internet intelligent electric vehicle industry, as well as the electrification, intelligence, Internet and sharing that FF took the lead in five years ago The industrial judgment of the company is very correct. Now it is the best opportunity to invest in the next generation of automobile industry. Although FF still faces severe financial difficulties, I firmly believe that as long as we persist in building products and technologies with extreme technology, complete ecology and extreme experience, we will definitely win the ultimate success, which is also the ideal and mission of FF. Source: Beijing business daily Author: Shi Feiyue editor in charge: Wang Xiaowu Gu NF

In the view of major general Ding, an industry and economic observer, there were too many debt disputes before Jia Yueting, and it was difficult for him to completely recover his personal image through bankruptcy and reorganization. For FF, in terms of financing, the overall positive is more than negative, but the uncertainty of the share transfer held by Jia Yueting will also have a certain negative impact on the future development of FF. In addition, when FF will be mass produced is still a problem. After the blowout in the past few years, the new energy vehicle market saw its first negative growth last year, which is a huge test for FF.

In response to the markets query, Jia Yueting previously said that the auto industry is surrounded by public opinions, especially the lament of new car manufacturers. However, Tesla has become a global wreck, proving the huge potential of the internet intelligent electric vehicle industry, as well as the electrification, intelligence, Internet and sharing that FF took the lead in five years ago The industrial judgment of the company is very correct. Now it is the best opportunity to invest in the next generation of automobile industry. Although FF still faces severe financial difficulties, I firmly believe that as long as we persist in building products and technologies with extreme technology, complete ecology and extreme experience, we will definitely win the ultimate success, which is also the ideal and mission of FF.