Embattled Chinese electric vehicle maker Faraday Future (FF) has added another chapter to its tumultuous history, as the company is rumored to be restructuring its organization and CEO Jia Yueting will step down as the firm’s leader.
Rumors surfaced on August 26 that FF will likely restructure into a partnership with no additional details available. FF’s risk-taking CEO and founder is attempting to rectify both his personal debt and the company’s debt by setting up a trust fund to repay his creditors.
The fund will be financed with Jia’s shares of FF which, following a future IPO, should net him and the company the funds needed to repay the mountains of debt. Jia has stated that he will take on the full responsibilities of paying back his debts.
In addition to the establishment of this debt repayment fund, Jia has indicated that he will sell some of his existing shares in FF, although the amount has not been specified.
Following FF’s very public break up with the Chinese real estate giant and lead financier, Evergrande Group, the electric vehicle company lacked the funds to continue much of its operations. FF was forced to lay off many employees and sell its Los Angeles headquarters.
With Jia stepping down as the leader of the firm, the company should be able to try and revive itself, whether that is via a joint venture partnership or some other type of structural reorganization.