Chinese court to auction Jia Yueting’s LeVR shares to pay off debts

Jia Yueting, founder of Chinese tech conglomerate LeEco, will likely be forced to pay off his debts by selling shares of LeVR, another affiliate of LeEco, the latest amid a series of financial woes following local judges freezing his stakes in Le.com.

According to a Jiemian report (in Chinese) on Friday, a Shanghai regional court just ruled that LeEco-owned LeView Mobile Ltd must pay debt of RMB 530 million (roughly $78 million) to the Shanghai-based private equity firm Leyu Fund. The creditor is also allowed to sell 39.63% shares of Leshi Chuangjing Technology owned by LeEco, if LeView Mobile refuses to comply. Both Jia himself and LeEco were ruled to bear joint liability by the court.

Records show Leyu Fund signed a loan contract with Jia and his companies in May 2015, offering an amount totaling RMB 410 million with a 15% interest rate over the period of three years. It filed a lawsuit against LeView Mobile Ltd as well as its parent company LeEco to Shanghai Senior People’s Court in July 2017, as the debtors failed to fulfill its obligations after the due date.

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