Shanghai High People’s Court ordered to ice up assets of LeEco CEO

06-07-2017 NIJHUM RUDRA

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Shanghai High People’s Court ordered to ice up assets of LeEco CEO

Chinese electronics manufacturer LeEco, headed by ‎Jia Yueting has been going through a very rough financial phase for the last one year. For the past several months, the firm reaped a huge fiscal downturn and was running out of cash, which forced the company to let off almost 85% of its employees. The situation became turned out to be more worsen when two of its top executives Atul Jain and Debashish Ghosh resigned unexpectedly. 

The debts have started augmenting and sales were reducing drastically. Last month, reports surfaced that Jia Yueting was stepping down from his post as CEO voluntarily when 70% of its US workforce lost their employment. After a major loan default, the founder’s $182 million worth of personal assets were seized by the authorities. 

To expand its US market, LeECo has invested more than $6 billion in 2016. The seizure was carried out by the Shanghai High People’s Court last week that ordered to ice up every property of Jia, his wife, and 3 further LeEco affiliates. The confirmation was provided by an anonymous spokesperson of LeEco. According to Nie Chengzhi, the VP for Finance, LeEco mentioned that they are working closely with China Merchants Bank for the reimbursement of the loan. The firm failed several times to repay the interests of the loan and this is where the bank has taken the legal action.



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NIJHUM RUDRA

Journalism is Nijhum’s passion and he loves to make people aware of different issues through his writing and this is what inspired him to choose this professi...

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