Attempt of the Chinese company LeEco to make a march-throw on the American market and overnight to win it was more unsuccessful than expected. The money thrown at this venture burned such a big hole in the company's pocket that even the Chinese authorities, who usually apply protectionism to their compatriots, decided to take on a hard-core debtor.
This week it became known that the China Securities Regulatory Commission (CSRC) demanded that the head of LeEco, Dza Yutin, return to Beijing by the end of the month and deal with the company's debts. According to the statement of the body, non-payment of debts "is a serious violation of the legitimate rights and interests of creditors and investors, which will have a significant negative impact on society."
The shares of Leshi Internet Information and Technology Corp., which includes LeEco, were traded on the Shenzhen Stock Exchange until April of this year, after which the trade was suspended due to the restructuring of the company. To finance their adventurous undertakings, such as the development of the Faraday Future autonomous electric vehicle in the US, LeEco borrowed billions of dollars from investors.
Expansion of LeEco outside of China turned into a fiasco, and in July of this year, Dzia left the post of chairman of the board of Leshi, promising in social networks to return the debts of LeEco. Judging by the recent statement of the Chinese authorities, the company and this time something went wrong.
The article is based on materials .
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