Jia Yueting, the bankrupt founder of electric car startup Faraday Future and former CEO, announced that the $600 million claim declaration amount is the joint guarantee debt of both his brother Jia Yuemin and himself, according to an official statement published by Jia’s debt project team on March 14.
“There must be a misunderstanding in the media coverage regarding the $800 million debt owed by Jia Yuemin to Jia Yueting,” the official statement said. “Jia Yuemin’s creditor right to Jia Yueting is only about $100 million, which is exactly the same as his declared debt principal from last October. The remaining $600 million is the joint guarantee of both of the brothers for the creditors, so it will not be paid off from the trust credit, nor has any impact on the voting result.”
The statement was in response to the heated media coverage that Jia Yueting is suspected of suspiciously transferring property ever since he officially filed for bankruptcy on March 2.
Recently, some Chinese media questioned Jia Yueting’s bankruptcy status and his company’s restructuring, saying that his current success in his bankruptcy case was simply the result of his family members obtaining significant support from creditors. The family was also suspected of suspiciously transferring property.
Jia’s team replied in the announcement that after carefully reviewing the newly added declaration amount reported by creditors on January 24, they believe that the so called “billions of creditors’ amount” doesn’t legally exist. The team is now ready to file a motion against the non-existent claim.