Jia Yueting No Longer Owns Equity in FF, Apologizes For Downfall of Leshi

Jia Yueting, Leshi Internet founder (Source: iawtmt)

EV maker Faraday Future (FF) and Leshi Internet founder Jia Yueting said on Weibo on July 2 that after nearly a year of hard work, his personal bankruptcy reorganization process was finally completed on June 26 in the United States. The reorganization plan took effect immediately, and the creditor trust was officially established and started operation. This means Jia no longer own any shares in FF.

Jia Yueting pointed out that for all creditors, everyone will share the future success of FF as a shareholder; for Leshi shareholders, they can also obtain from the creditor trust compensation after meeting certain conditions.

SEE ALSO: US Court Confirms Restructuring of FF Founder Jia Yueting’s Personal Bankruptcy

LeTV’s share price dropped by 10% today, trading at 0.26 yuan, with a turnover of 109 million yuan. Together with today, LeTV’s share price fell by 83% in 19 trading days.

In the Weibo open letter, the broken tycoon said fundraising for FF “is going well.” The automaker plans to “quickly complete its IPO program soon,” Jia said. Jia also disclosed that FF has successfully reached cooperation agreements with two important American enterprises for an intelligent driving platform, and is also expected to reach a major partnership with a Chinese company in the near future.

“I’ve had many ups and downs in the 20 years since I started my business,” Jia said in his open letter. “While there is no doubt that the Internet ecosystem I created was a success and has been recognized by many of my peers, there is no getting around the fact that I was first responsible for the overnight collapse of the Leshi.” Jia also expressed his gratitude for the support from Sunac and Evergrande Group, two major investors, and the trust of all the shareholders.

Jia will continue to work with all other partners as FF’s founder, partner, and Chief Product and User Ecosystem Officer. The entrepreneur is known for building Leshi, a video-streaming business into an electronics manufacturer, before starting Faraday Future with a stated ambition to overtake U.S. electric vehicle leader Tesla Inc.