xi's moments

Around $14m of LeEco's assets to be 'seized'

By Yu Xiaoming | chinadaily.com.cn | Updated: 2018-12-03 13:30

Leshi CFO Zhangwei said the company must repay about 8 billion yuan in debt by the end of September. [Photo/VCG]

Nearly 100 million yuan ($14.43 million) of LeEco assets have been applied to be seized and frozen, the latest blow for the debt-laden Leshi Internet Information and Technology Corp.

Tianhong Innovation Asset Management has applied to adopt protection measures on a total of 90.02 million yuan in assets belonging to Leshi Internet Information and Technology, the Shenzhen-listed arm of Chinese internet company LeEco, as well as Lele Interactive Sports and Beijing Pengyi Asset Management Center, Beijing Business Today reported.

At present, the application has obtained approval from the court, the newspaper said.

Leshi didn't respond to a request for comment, and an official of the company told the newspaper they were "not aware of it".

Data showed Lele Interactive Sports and Beijing Pengyi Asset Management Center are both companies under the LeEco system, and the former was controlled by LeEco founder Jia Yueting.

Tianhong Innovation Asset Management is a wholly owned subsidiary of Tianhong Asset Management Co Ltd, which runs Yu'e Bao, one of China's most popular internet-based funds.

Moreover, Liu Hong, a high-profile executive on the board of directors of Leshi also announced his resignation, raising more concerns among industry insiders over the future of Leshi.

Founded in 2004, Leshi's parent LeEco started as a video streaming service provider, growing rapidly into a tech heavyweight with a presence in smartphones, TVs, cloud computing, sports and electric cars.

But it ran into a cash crunch in late 2016 after expanding too fast. Although LeEco founder Jia Yueting resigned from all his positions at Leshi due to unpaid debts and the financial crisis, he remains Leshi's largest shareholder.

Leshi reported a net loss of $1.84 billion last year, a sharp drop of 2,192 percent compared with the previous year.

Leshi CFO Zhangwei said at an extraordinary shareholders meeting held last month the company must repay about 8 billion yuan in debt by the end of September.

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