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Chinese tech firm LeEco hasn’t had the best 12 months, to put it mildly, as it sought to rapidly expand. The company’s Faraday Future electric car division has endured a troubled gestation, while major layoffs at the parent company haven’t done it any favours either.
Now, a Shanghai court has frozen the personal assets of chairman Jia Yueting, the New York Times reported. The assets were frozen after LeEco’s Le Mobile business missed a bank repayment.
The bank in question issued a statement, saying it had made the move after numerous attempts to recover the cash.
Banks aren’t the only creditors looking for their money though, as they start to show up in person to demand payments. It was reported that several suppliers conducted a seven-day sit-in at LeEco’s Beijing office, eventually leaving without cash being paid.
LeEco has tried to expand in rapid fashion, but financial issues abound for the Chinese company
LeEco started out as an internet video company, but has quickly diversified into everything from smartphones (we reviewed the LeEco Le 2) to TVs and more. The past year or so also saw the company attempt to break into the US market. But the expansion plans have clearly come at a notable cost.
According to the publication, Jia admitted to cashflow issues at a shareholder’s meeting for a publicly listed division last week.
“The cash problems at the non publicly traded businesses are more serious than when this crisis erupted,” Jia was quoted as saying. “Our businesses are constantly using cash to repay loans, having a huge impact on their operations.”