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Briefing: Le.com denies that Jia Yueting’s Faraday Future stake was frozen
融创催乐视网3日内清偿30亿元欠款 乐视控股否认贾跃亭FF股权遭冻结 – Securities Daily
What happened: Leshi Internet (Le.com) recently stated that it would call on cash-strapped founder Jia Yueting to pay back his debts using equity or assets from his troubled California-based EV startup, Faraday Future. It’s also denied reports that Jia’s 33% stake in Faraday–held through a network of offshore shell companies–was frozen after early Leshi investor Taoyun Capital took the company to court. An internal group handling Leshi’s debt affairs told Securities Daily that neither its members nor Jia have received notice of any such decision. Taoyun did not respond to a request for comment.
Why it’s important: Although Leshi says Jia’s shares in Faraday are still intact, Taoyun’s case against it is still ongoing. In addition, a suit from another investor, Tianhong Innovation, has effectively frozen RMB 90 million of the video-streaming giant’s assets. Meanwhile, Faraday’s future looks no less shaky after the company admitted to “very tight cash flow” and put even more of its US workers on unpaid furlough. In short, if Leshi is forced to pay back unhappy investors, it likely won’t find a satisfying solution with either Faraday Future or their common founder, Jia Yueting.