AutoBeta(AutoBeta.net)05/22 Report--

According to Jia Yueting's debt handling team, after seven months of application, negotiation, voting and court confirmation, Jia Yueting's personal bankruptcy reorganization has finally been finally confirmed and approved by the bankruptcy reorganization Court of Central California, which means that the personal bankruptcy reorganization has officially entered the effective process.

According to Jia Yueting's personal bankruptcy reorganization plan, Jia Yueting will transfer all the FF shares held by the individual to the creditor trust. Jia Yueting, the founder of FF, will no longer own FF shares, but will still lead the development of FF as CPUO. In short, Jia Yueting's debt will be related to the future development of FF, and if FF makes a profit in the future, then creditors can get a certain amount of debt repayment.

It is helpless for creditors to agree to Jia Yueting's property restructuring plan. As the amount of Jia Yueting's debt is huge, if Jia Yueting takes property liquidation, it is inevitable that some creditors will not be able to be repaid, so creditors can only accept the property restructuring plan put forward by Jia Yueting in order to get the opportunity to repay the full debt.

However, it is not easy for creditors to get arrears through FF's profits. In the electric car market, Tesla has been successful, but still can not stop losses, coupled with other car companies and car-building new forces to seize the new energy market, it is difficult for FF to stand out in the market. On the other hand, even if FF is strong enough to compete with other electric vehicle brands, the price of $200000 is beyond the reach of many consumers, making it difficult to recover cash flow through mass production and listing.

Of course, the passage of personal bankruptcy restructuring is good for both Jia Yueting and FF. The bankruptcy reorganization gives Jia Yueting a respite in a short period of time, which also plays a positive role in promoting the FF financing process and product delivery.

The debt collection of creditors has come to an end for the time being, but the feud with Leeco is still going on. On April 14, the Shenzhen Stock Exchange announced that it had decided to terminate the listing of Leeco shares, that is, Leeco will enter the delisting period from June 5, and the Shenzhen Stock Exchange will delist Leeco shares after completing the delisting period.

Although Jia Yueting is no longer the chairman of Leeco and is no longer involved in the company's affairs, Leeco said that Jia Yueting is still the actual shareholder of Leeco, even if the personal bankruptcy restructuring succeeds, the 9 billion yuan debt guaranteed by Leeco cannot be recovered. However, Jia Yueting responded that the amount guaranteed by Jia Yueting in Leeco's debt is about 3 billion yuan, and the personal debt restructuring plan already includes the debt of Letv Yundan Insurance case and the joint and several debt of Letv Xingen M & A Fund.

Before filing for bankruptcy restructuring, Jia Yueting said: "the only reason I give up everything is to make FF, pay off the remaining secured debt as soon as possible, and realize the dream of changing the auto industry." It can be said that the adoption of bankruptcy reorganization is the first step for Jia Yueting to make FF, but so far the promise of mass production and listing of new cars has not been realized, and the day for FF to make a profit is a long way off. In other words, bankruptcy restructuring is actually pulling a group of creditors to invest in a car company that has no development prospects, and these creditors will also be suffocated by Jia Yueting's "dream".

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat