Leshi Internet Information and Technology (LeEco, 樂視) is trying to resolve a dispute with one of China’s largest banks over unpaid interest on debt, a spat that has prompted a Shanghai court to freeze 1.24 billion yuan (US$182 million) of assets held by the tech conglomerate and its billionaire founder, Jia Yueting (賈躍亭).
The ailing firm’s disagreement with China Merchants Bank Co (招商銀行) arose over loans to a smartphone subsidiary called Leview Mobile (樂風移動), both companies said separately yesterday.
That unit ignored several requests for interest payments, the lender said.
It eventually went to a court in Shanghai, which then ordered the freeze on assets held by three LeEco affiliates, Jia and his wife, according to Xinhua news agency.
LeEco is now in negotiations with its creditor and has enough capital to service its debt, it said in an e-mailed statement.
Merchants Bank said the court’s decision had since brought business risks under control, without elaborating.
“The bank does not rule out the possibility of solving this issue through friendly negotiations with LeEco,” it said in an e-mailed statement provided by a representative.
Jia is fighting to revitalize a conglomerate he once portrayed as superior to Tesla Inc and Apple Inc, but is now grappling with a cash squeeze after expensive forays into cars and smartphones.
Jia has been forced to slash costs and employees, and has mentioned plans to sell assets to address the crunch.
The Shanghai court’s freeze took effect on Thursday last week and is to last three years till June 2020, Xinhua cited the court document as saying.
LeEco has been trying to come to terms with a larger than anticipated debt burden.
Jia expected 9 billion yuan to be enough to solve its funding issues last year and managed to raise 9.7 billion yuan, he told shareholders in a transcript supplied by LeEco.
Instead, he and the company jointly paid off about 15 billion yuan in debt that year.
‘ACCORDING TO PLAN’: A company official said that it has set up production sites worldwide to provide services and that its Wisconsin project was going smoothly Hon Hai Precision Industry Co’s (鴻海精密) smart manufacturing center in Wisconsin would begin trial manufacturing in the middle of this year, the company said yesterday, adding that it plans to build a research institute to develop key technologies to support growth over the next five years. Hon Hai, known internationally as Foxconn Technology Group (富士康科技集團), said in an annual report submitted to the Taiwan Stock Exchange that its planned Foxconn Institute for Research in Science and Technology would conduct research into artificial intelligence, next-generation communications, quantum computing, cybersecurity and nano semiconductors in Taiwan. Hon Hai is to make products at the center
TV and online retailer Momo.com Inc (富邦媒體) yesterday said it has set up a new logistics subsidiary, Fu Sheng Logistics Co (富昇物流), to oversee the company’s extensive shipping operations. Leveraging Momo’s 23 satellite warehouses and distribution centers nationwide, Fu Sheng will be in charge of executing the retailer’s same-day shipment plan for deliveries in Taipei, New Taipei City, Taoyuan, Taichung, Tainan and Kaohsiung, Momo said in a press release. Seeking to further shorten its supply chain, the company is to set up another seven satellite warehouses and distribution centers by the end of the year. “Fu Sheng has a fleet of 200 couriers
US-CHINA TENSIONS: The company said that it supplies self-designed chips to the Chinese company and, as such, is not affected by the latest US export restrictions Macronix International Co (旺宏電子) said it does not expect its shipments of memory chips to Huawei Technologies Co (華為) to be affected by the latest US export restrictions on the Chinese tech giant. “As long as the company [Huawei] places orders, we will ship [chips], unless the [Taiwanese] government restricts all Taiwanese companies from shipping” to Huawei, Macronix chairman and chief executive officer Miin Wu (吳敏求) said on Monday in Hsinchu. The US Department of Commerce on Friday took a further step to block chip supplies from non-US companies to Huawei by requiring foreign semiconductor makers to get US government permission before
E Ink Holdings Inc (元太科技), the world’s sole supplier of e-paper displays for e-readers and shelf labels, posted its best quarterly net profit for the first quarter in nine years amid increased demand during a traditionally slow season. Net profit soared 80 percent to NT$787 million (US$26.23 million) in the quarter ended March 31, compared with NT$438 million a year earlier. That translated into earnings per share of NT$0.69, up from NT$0.39. E Ink posted lower royalty income of NT$371.23 million last quarter from NT$448.74 million a year earlier, a company financial statement showed. E Ink said that it expects royalty income to