LeEco, the grappling tech group of China, is under rising stress from its business partners and creditors, with a court ordering a stay on some of its possessions in Shanghai over delayed payments to a bank.
The new financial issues of the company, which has debts ranging from online content to smart cars, have surfaced days post CEO and founder Jia Yueting claimed its cash issues were far poorer than anticipated. He also added that billions of dollars in capital raised in last few months were not sufficient to assist it get out the crunch.
China Merchants Bank Co. Ltd. claimed last week in a statement that it had applied to have permission for freezing some of the assets of LeEco since Leview Mobile HK Limited, the company’s subsidiary, had been making delay for payments of interest on a loan.
“CMB’s branch in Shanghai frequently asked the repayment without fail and so wanted to utilize legal methods,” the bank claimed, adding that it now had dangers associated with the loan under control and did not exclude using friendly talks to solve the problem.
LeEco, which manages Coolpad, the smartphone manufacturer, and Leshi Internet Information and Technology Corp., its fundamental listed smart TV unit, has been struggling huge fiscal pressure since Jia admitted in 2016 that the company had grown too quick and was encountering various company issues.
Shenzhen-based Leshi Internet Information and Technology Corp. subjected a statement this week, claiming that the Shanghai court had iced up 26.03% shares in LeEco owned by Jia, and would continue to do so for 3 years.
As of this week, Jia, the managing stakeholder, held 26.27% of stakes in LeEco, the report further added.
As per a court article dated June 26, the Court of Shanghai High People accepted an order of freezing 1.237 Billion Yuan ($182 Million) worth of property of 2 other LeEco-connected companies, Leview Mobile HK Limited, and CEO Jia as well as his wife.