LeEco's debt affects listed firms: report

Updated 2017-08-03 10:00:51 Global Times

LETV is facing major debt pressure. The rollover deadline for two company bonds issued by private placement worth 1.9 billion yuan (2 million) is fast approaching, media reported on Wednesday.

Sun Hongbin, the company's new chairman, claims to have already prepared in advance to repay this debt, according to domestic news site ifeng.com

As of July 28, at least 17 A-share listed companies had been doing business with LeEco, which LETV is listed under.

Most of these companies have pending bills to be settled. Huace Group is still looking at the biggest accounts receivable of 368 million yuan, thepaper.cn reported on Wednesday.

Many listed companies' capital positions have been affected by LETV's cash crunch, according to thepaper.cn's report.

Compared with banks and private equity firms, most listed companies appear to be more amenable to finding solutions. Instead of applying for asset freezes, each company is making its own decisions, the report said.

Some analysts have said that LeEco's expansion created a long but problematic business chain. LeMobile is the major cause that triggered the capital crisis, they said.

Le Vision Pictures and LETV have been involved due to the terms of various guarantees, but their businesses continue to operate relatively smoothly. Other divisions such as Cloud have been hardly affected, the media report continued.

The conglomerate LeEco is in the midst of paying back an overdue loan and discussing repayments of a larger, upcoming due loan with China Construction Bank.

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