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According to relevant media reports on October 11, Jia Yueting, the future founder of Faraday, submitted a relevant document on personal bankruptcy reorganization to the US court. According to the documents, Jia Yueting will transfer all assets to creditors through a creditor trust, which is controlled and managed by the creditor committee and the trust trustee.

At that time, Jia Yueting submitted bankruptcy restructuring to the United States, Jia Yueting himself and his domestic debt group did not explain the "bankruptcy restructuring."

On October 14, Jia Yueting's debt handling team officially said that as part of the personal bankruptcy reorganization plan, a committee composed of creditors and a creditor trust controlled and managed by the trust trustee would also be established at the same time, and all Jia Yueting's assets and related income determined by the US court would also be transferred to creditors in this way. After the completion of the plan, Jia Yueting will no longer hold any future stake in Faraday.

The FF website also announced that in order to thoroughly solve the personal domestic debt problem, Mr. Jia Yueting, founder and CPUO of FF, has filed for personal bankruptcy reorganization in the United States and set up a creditor trust controlled and managed by the creditor committee and the trust trustee. Upon completion of the plan, Mr. Jia Yueting will transfer all his equity in Smart King Limited (Faraday Future Global Holdings) to the creditor trust fund to better protect the interests of creditors and repay the remaining debt.

FF also said in the announcement that Jia Yueting's personal bankruptcy restructuring will not affect the normal operation of FF, and will produce multiple benefits to FF. In addition, Jia Yueting gave up all FF shares only to completely pay off the debt and to make the FF. Jia Yueting will continue to lead FF to achieve strategic goals to maximize the value of equity assets and creditor trust assets as the founder and CUPO of the company.

According to the announcement of the contents of the bankruptcy reorganization statement, to put it simply, all creditors can not only get all Jia Yueting's personal assets in advance through creditor trust, but also be repaid after maximizing the value of trust assets in the future. at the same time, retain the claims of other original debtors except Jia Yueting.

Some analysts said that the personal bankruptcy reorganization and creditor trust scheme applied for by Jia Yueting, combined with FF's earlier completed partnership system, can be seen as a major benefit to FF. While thoroughly solving the remaining debt problem of Jia Yueting, this scheme can accelerate the financing of FF and lay a solid foundation for the success of FF, so as to maximize the value of equity assets of FF and the ultimate interests of creditors.

It is understood that the debt that really belongs to Jia Yueting is actually very small, and more than 90 percent of the debt is repaid for the company. at present, Jia Yueting has repaid more than 3 billion US dollars in debt for the company, and the total remaining debt is about 3.6 billion US dollars. Minus the frozen domestic assets to be disposed of and the guaranteed debt that can be converted, the net debt is about 2 billion US dollars. The purpose of applying for personal bankruptcy reorganization is to solve the problem of personal remaining debt better and faster, so that every creditor can have an equal opportunity to repay the debt.

For Jia Yueting, who decided to give up all his assets only to repay his debts, he had both bankruptcy liquidation and bankruptcy reorganization. Compared with bankruptcy liquidation, it was more direct and simple, but out of a responsible attitude, he chose a bankruptcy reorganization method that was more beneficial to creditors and more responsible.

Jia Yueting in line with the attitude and responsibility of being responsible for all debts to the end, after the news of applying for personal bankruptcy and restructuring was confirmed, netizens still hope that Jia Yueting will pay off the debt as soon as possible and lead FF to the peak as soon as possible.

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