Chinese entrepreneur Jia Yueting files for bankruptcy in US but holds on to hope of building electric car to challenge Tesla
- Chapter 11 bankruptcy filing calls for a creditor trust is to receive all of Jia’s US equity interest and personal assets under a debt restructuring plan
- Jia’s team says he had repaid US$3 billion of debt but US$2 billion was still outstanding
An embattled Chinese entrepreneur who made his name through a star online video firm has filed for bankruptcy in the US, but said he is determined to build his proposed electric car that has hit a series of roadblocks.
Jia Yueting, 46, founder of electric car start-up Faraday Future and streaming company LeEco, said he had repaid US$3 billion worth of debt while another US$2 billion was still outstanding, according to a statement published by his team on Monday.
Jia filed for Chapter 11 bankruptcy on Sunday and has established a creditor trust to receive all of his equity interest and personal assets in the US under the debt restructuring plan, the statement added. Jia controlled a 33 per cent stake in Faraday.
The trust will be managed by a committee of creditors and a trustee.
Jia’s team said that the failed tycoon would return to mainland China to pursue fresh opportunities in developing Faraday Future and would continue to lead the management team as the EV firm chased a so-called “dual home market” strategy in the US and China.
