China summons LeEco CEO to address debt, but he declines to go
LeEco CEO Jia Yueting is in the United States right now trying to acquire funds to continue the company’s joint venture with automaker Faraday Future in making an electric car.
This is happening as the China Securities Regulatory Commission has notified him that he should return to the country to work with investors and creditors on the massive debt that he has amassed to cover losses in the wake of the company’s failed global expansion.
Jia said in a statement on his WeChat account that he will delegate responsibilities to his brother, Yuemin, who will appear before the commission in Beijing on Friday.
“I’m deeply sorry and blame myself for the negative impact of LeEco’s debt crisis,” Jia Yueting wrote.
Some of Jia’s and his wife’s personal assets have been frozen while the company has been cutting resources and staff in an effort to return principal to lenders. He’s also been placed on a national blacklist for defaulters to prevent him from taking out further loans. Jia claims that his status and the company’s problems were based off of a single late payment in July.