LeEco founder Jia Yeuting resigns amid financial crisis, promises to repay debts

By : |July 7, 2017 0

The founder of China’s debt-ridden LeEco, Jia Yeuting resigned from his post as the chairman of the company just hours after making a public plea for patience amid a financial crisis at the company.

Before the resignation announcement, Jia had pledged to take full responsibility and repay all debts. “Please give LeEco some time, please give LeEco car some time,” Jia Yueting wrote on his Weibo and WeChat accounts. “We will pay back creditors, suppliers and any other debts. My resignation as CEO was in order to put the whole of my effort towards getting FF91 [the Faraday Futures electric car model] onto the market as soon as possible,” Jia added.

Jia’s resignation is the latest development in a week of turmoil for the company, with asset managers seeking to pull off the investment process after a Shanghai court granted China Merchant Bank Co Ltd’s request to freeze $182 million in assets due to late payment.

Jia, however, pointed out in the WeChat post that he still has an important role at LeEco. “I am still LeEco’s executive director and largest shareholder, resigning as the chief executive of LeEco’s listed company and many other roles is all aimed at making the FF91 go into production phase and hit the market as soon as possible,” Jia said, referring to the luxury electric car that LeEco is developing with US startup Faraday Futures.

Analysts have said that LeEco’s foray into automobiles has caused the financial troubles, but Jia said LeEco remains committed to creating electric cars. “Our dream to revolutionize the automobile industry cannot be defeated, however big a bank run,” Jia said.

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