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Faraday Future says it hasn’t lost arbitration battle with Evergrande
Electric car maker Faraday Future (FF) says a recent arbitration decision against the company is not final, and full resolution of the issue is pending consideration.
FF is accusing its investor Evergrande Health of misleading the public on the matter.
On November 29, the Hong Kong International Arbitration Center (HKIAC) ruled against electric car maker Faraday Future’s motion to waive its joint-venture partner Smart King’s right to use Faraday Future’s corporate assets as financing guaranty, Evergrande Health said in a public announcement (in Chinese).
Smart King was established in November 2017 by Hong Kong-based Shiyin Corporate and Faraday Future shareholders including Jia Yueting. Jia is founder of Faraday Future and Le.com.
Evergrande Health became Smart King’s largest shared holder in June after completely acquiring Shiyin.
Before the arbitration, Evergrande Health froze its assets in Smart King due to disputes over financing.
On October 25, HKIAC said before the announcement of any final arbitration resolution result, the joint venture may process financing of amount no greater than $500 million.
An article in Chinese media National Business Daily cites an anonymous person close to Evergrande as saying the company is happy with the outcome and that Jia Yueting would have to pay for its own and Evergrande’s legal and arbitration fees—an amount the article puts at HKD 8.3 million (under $1.1 million).
Faraday Future said in a response (in Chinese) to the arbitration decision, that the company was “confident” that it would have the final victory. The company added that the mass production of FF 91 is in progress, with the help of investment bank Stifel and global investors.