Bank gets a freeze on $182 million worth in LeEco chairman’s assets
China Merchants Bank has successfully attained a freeze on the assets owned by the chairman of LeEco and his associated entities.
Xinhua reports that more than ¥1.2 billion or $182 million in possessions belonging to Jia Yueting, his wife and three LeEco-linked firms. The Shanghai High People’s Court granted the hold to last for at least three years. The collection was made in connection to a $324 million loan for LeEco’s 18 percent stake in Hong Kong-based Coolpad.
It’s another link to a chain of unfortunate events surrounding the company. The New York Times reports that LeEco has had to borrow $6 billion since last year and has returned very little of it. Property holdings firm Sunac gave the company $2.2 billion, a figure that was just about eclipsed by the amount of debt Jia paid off recently. Jia has made big pushes into international markets and had attempted a purchase of TV-maker Vizio.
Two liquidity crises have surfaced since November of last year. Operations had to be scaled down and jobs cut. A margin call was reportedly made on the stock of parent company Leshi. Worse yet, suppliers have been staging protests at LeEco headquarters in Beijing, asking for payment — they haven’t gotten any. Furthermore, Shenzhen Royal Asset Management, a Foxconn-linked group, has just taken away its 20 percent stake in LeEco.
While Jia Yueting remains chairman of LeEco, he is no longer the chairman of its parent group, digital media company Leshi.