Jia Yuetings personal bankruptcy was almost exposed and he was nearly invested by local tyrants in the Middle East

category:Finance
 Jia Yuetings personal bankruptcy was almost exposed and he was nearly invested by local tyrants in the Middle East


No matter who it is, the Middle East peoples interest in Faradays future is only one of the many revelations that emerged in the process of Jia Yuetings bankruptcy.

In addition, according to the documents in Jia Yuetings bankruptcy case, all the tangible and intangible assets of Faraday in the future are basically mortgaged as collateral. That means the start-up may have more difficulty getting new loans, and risks losing those assets if it cant make up for the debt it has taken.

Here are some important details of the bankruptcy Insider:

1. Jia told creditors that Faradays future attracted a lot of interest

Although Faraday will face many problems in the future, including a large number of talents being taken away by competitors. But the company insists that the patented technology developed for the ff91 electric SUV since 2014 is very valuable. Faraday said in the future that once the situation subsided, Jia Yuetings bankruptcy problem was properly resolved, and investors or partners would wait in line. Although his bankruptcy did hinder the completion of the investment transaction, Jia Yueting told many of his creditors in April that Faradays future did attract a lot of interest.

According to a statement, Jia Yuetings legal team told creditors that Faraday future company is in joint venture negotiations with several potential investors in the Middle East, that it is cooperating with more than 20 potential debt investors in order to obtain short-term investment, and that Faradays future even is trying to apply for US government loans. Jias team also said that Faraday future is negotiating with the governments of three Chinese provincial capitals on the establishment of headquarters and is in close communication with two major Chinese OEMs on cooperation matters.

Its not surprising that Faraday may attract some investors interest in the future. According to foreign media reports later last year, Faraday futures once held talks with Fiat Chrysler automobiles. Today, electric car start-ups are once again a hot target for all kinds of investment transactions. Rivian continues to make incredible investments. Nikola, a zero emission trucking company, recently raised hundreds of millions of dollars through a reverse merger. Fisker Inc. is looking for a similar listing. Even karma Automotive has raised $100 million.

What I can confirm is that as Faradays future ff91 delivery continues, we are in discussions with different organizations, the nature and extent of the discussions are confidential, so I cant disclose any further details, said John Schilling

2. Faradays future offers its new CEO a multimillion dollar home in Los Angeles

Last September, Jia Yueting stepped down as the future chief executive of Faraday and was replaced by Carsten breitfeld. Since then, Faradays future has embarked on a new road to the future. As a former BMW executive, breifeld has extensive contacts in the industry. Novel coronavirus, Chinas Byton, has helped create another electric vehicle start-up, which has been put into operation before the outbreak of the new coronavirus. Of course, breifeld didnt have a good relationship with Byron when he left.

Breifeld told foreign media last year that he told Jia that he would come to Faraday only when he was appointed the future chief executive of Faraday. But he got more than a title, because according to the bankruptcy case, breifeld now lives in a multi million dollar house owned by Jia Yuetings partners.

John Schilling said in an email that breifeld lived in a property rented by Faraday in the future, which is part of the relocation benefits Faraday will provide to executives in the future.

I burned all the bridges to the past. I left my home in Munich, abandoned everything I had in the world, and my son and I moved here, and now Im here. Its much better than silicon valley. In Silicon Valley, if you like technology, you will meet a lot of technicians, which is very exciting. But life in Silicon Valley is boring. And here is very close to the sea, I like the sea very much, the quality of life is much better

3. Faraday will finance Jia Yuetings bankruptcy

Since its establishment, Faraday has been in a state of shortage of funds in the future. But Faradays future has been particularly tight since its separation from Evergrande, the main investor, in 2018. The split between Faraday and Evergrande caused hundreds of people to lose their jobs and the situation eventually became very bad. So Faraday will sell its headquarters in 2019 to get some cash.

However, Jias bankruptcy was funded by Pacific Technology, one of Faradays future major holding companies. At the beginning of the process, Jia borrowed $2.7 million from Pacific technologies. Then, earlier this year, at the end of the case, he received another $6.4 million debtor held loans from Pacific technologies.

Ultimately, in the case of Chapter 11, Pacific technologies, a subsidiary of the debtor, was the only institution willing to provide financing, Jias team wrote Jias lawyers claim that all this is aboveboard, and that the creditor Committee, an organization of representatives of some defaulting companies in bankruptcy, helped negotiate specific terms.

Nor was the money taken directly from Faradays near depleted coffers in the future. Instead, these loans are mainly made up of personal donations from members of the senior management team of Faradays future global partners.

Jia Yuetings bankruptcy also revealed the way his companies interact. Take luxury houses for example: Jia Yueting originally bought these houses through a company called Oceanview drive. He even borrowed some money from Faraday future. Mr. Jia said he no longer owns shares in the houses, but Seaview Avenue now rents them to Jia, who began subletting them to a company called warm time Inc. in 2019 for $43810 a month. In a document submitted to the Secretary of state of California, warm times listed the home of Deng Chaoying, the future vice president of Faraday. Later, warm times leased it to Faraday future, which aims to provide a full range of services, including hospitality services, such as food services, housekeeping services, insurance and utilities..

4. Faradays future is to borrow money to survive, the current cash is still insufficient

The drawback of this cooperation is that, according to Jia Yuetings bankruptcy documents, most of Faradays future tangible and intangible assets have been mortgaged as collateral. That means the start-up may have more difficulty getting new loans, risking losing those assets if it doesnt pay back the debts it has been carrying. In fact, Faraday futures had to apply for a $45 million extended loan from birchlake, which matures in October 2019.

Faradays future recently said to the media that it had paid off the loan. According to documents submitted to the California Secretary of state and the patent and Trademark Office, birchlake has lifted control of Faradays future intellectual property. However, interest on Faradays future mortgage has been transferred to royod, a California limited liability company. John Schilling said it was a current lender but there was little information about who was sitting behind the scenes. In royods filing with the patent office, the address given was just a P.O. Box in Santa Monica. In the documents submitted to the US Secretary of state, the manager of the limited liability company is Kaidong, which seems to be, or was, Faradays future executive assistant.

As of the end of July 2019, Faraday will have to continue to borrow money in the future, because the company has only $6.8 million in cash (the latest data shared in Jia Yuetings bankruptcy petition), while about $2 billion invested by Jia Yueting and Evergrande in the past few years has been used up. In December, a lawyer for Jia told the judge that he didnt believe the start-up had enough capital to last another 60 days, and that the companys cash was basically exhausted.. In June 2019, the global partners group had to borrow $16.5 million from Faradays future to support the start-ups day-to-day operations. In April, novel coronavirus epidemic related wage protection projects were also awarded by Faraday Future Ltd for $9 million 100 thousand.

With the approval of Jia Yuetings bankruptcy, Faraday future said it could finally discuss with investors again in the name of the luxury electric SUV finally put into production. But even in a market where electric car start-ups are suddenly on the right and left, Faraday still has a long way to go. Breifeld has said Faraday will need $850 million to be put into production in the future. Court documents show that according to Jias bankruptcy, the start-up has recently been striving for a $170 million loan to maintain its operations and engineering construction..

If Faraday succeeds in raising new capital and putting it into production in the future, Jia Yuetings creditors will certainly benefit now. When they approved Jia Yuetings bankruptcy plan, they agreed to convert the creditors rights into shares of a trust company. If the start-up is successfully listed or sold, the trust company will pay Jia Yueting a fee. In a letter published last month, Jia Yueting, a former salesman, described many of his troubles as positive. I firmly believe that the past successes and failures will be valuable experiences for Faradays future success, Jia wrote. Ive learned a lot from past mistakes and I hope I wont repeat them. //The iPhone 11 is produced in India for the first time, which can reduce the import tariff by 22% and will not return to China temporarily! CEO of sailin automobile responds: the car will not be finished, regret and useless. Source: interface news editor in charge: Wang Xiaowu_ NF

If Faraday succeeds in raising new capital and putting it into production in the future, Jia Yuetings creditors will certainly benefit now. When they approved Jia Yuetings bankruptcy plan, they agreed to convert the creditors rights into shares of a trust company. If the start-up is successfully listed or sold, the trust company will pay Jia Yueting a fee. In a letter published last month, Jia Yueting, a former salesman, described many of his troubles as positive. I firmly believe that the past successes and failures will be valuable experiences for Faradays future success, Jia wrote. Ive learned a lot from past mistakes and I hope I wont repeat them.

//Execute the function of getting the article information: varaid = 4727787 ;