Faraday Future Seeks Creditor Support as Founder Jia Yueting Struggles With Bankruptcy

Jia Yueting, founder of Farady Future (Source: tuchong)

Electric car startup Faraday Future’s (FF) Global Partners Team recently released an open letter to its creditors, hoping they could vote in support of founder Jia Yueting’s bankruptcy and restructuring.

SEE ALSO: Faraday Future Founder Jia Yueting Reaches Agreement with Creditors on His Bankruptcy Case

The team, consisting of 26 individuals from technology, internet and automotive companies and exercising the right for top-level corporate governance was introduced by Jia in August 2019 when he resigned as FF’s CEO.

The open letter reads, “Only when FF achieves monumental success can YT (Jia Yueting) completely pay off his debts, or even provide an upside to the creditors, in order to fulfill his obligations to the creditors.” In addition, it said that Jia had been reflecting on the success of the “Eco Model” and the failure of LeEco (his previous company) caused by overly accelerated expansion, flawed capital strategies and poor management, showing confidence in Jia’s competence to avoid same mistakes.

Recently, Jia has been facing mounting issues over the real amount of his wealth and allegations of clandestine property transfers as media questioned his bankruptcy status and company’s restructuring.

It was also reported that FF recently gained a grant of more than $9 million from the Paycheck Protection Program launched by the US government.

According to the open letter, these funds will guarantee FF’s normal operations. FF also negotiated cooperation deals witg several parties, that will likely generate sufficient cash flow to fund FF’s normal operations until the FF 91 launch.

“As the only car in the world that exceeds Tesla on multiple levels, the FF 91 is just one step away from production. Just think about the completely different concept of mobility life FF 91 is going to bring to the roads in the future. We believe you would be as excited as we are,” the letter said.