LeEco Reacts to Its Inclusion by People’s Court on ‘Dishonest Debtors’ List

LeEco Reacts to Its Inclusion by People’s Court on ‘Dishonest Debtors’ List

Dou Shicong

Date: Tue, 09/12/2017 - 20:34 / Keywords: MSCI, LEECO, debt, Repayment, Dishonest, Debtor, court
LeEco Reacts to Its Inclusion by People’s Court on ‘Dishonest Debtors’ List
LeEco Reacts to Its Inclusion by People’s Court on ‘Dishonest Debtors’ List

(Yicai Global) Sept. 12 -- Upon inclusion of Leshi Holdings (Beijing) Co., the holding company for the cash-strapped LeEco conglomerate, and Leshi Mobile Intelligent Information Technology (Beijing) Co., subsidiary of the brand’s listed affiliate, on a Tianjin People’s Court’s list of “dishonest debtors,” LeEco said the company's asset value is greater than its debts and that it has been actively disposing of the assets of non-listed businesses to raise funds for debt repayments.

Following its cash crisis, the group has been actively and systematically repaying the debts through selling assets and other ways, a company executive said. So far, the company has repaid debts of over USD2.45 billion, said Cheng Shisheng, vice president of Leshi, in an interview with Securities Daily yesterday.

Leshi Holdings and Leshi Mobile have been added to the list of “dishonest debtors” subject to enforcement of the Tianjin No. 2 Intermediate People's Court due to the cumulative arrears of USD16.43 million to two mobile phone supply chain manufacturers. They were found guilty of failing to fulfill legal obligations when capable, the court said.

Jia Yueting, founder of LeEco, publicly said before that the company will make efforts to pay off all the arrears, which may be related to the frozen assets of Jia Yueting and LeEco by China Merchants Bank Co. [SHA:600036], the paper said.

The asset value of the non-listed businesses of LeEco is estimated to be between USD4.59 billion to USD6.11 billion. Some investors believe that the equity of several subsidiaries and over USD3.06 billion of land assets would be enough to repay the company's debts.

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Keywords: MSCI, LEECO, debt, Repayment, Dishonest, Debtor, court