Leshi urges LeEco founder Jia to fulfill loan commitment

Updated 2017-09-22 14:00:55 chinadaily.com.cn
Jia Yueting, founder of LeEco. (File Photo)

Jia Yueting, founder of LeEco. (File Photo)

Shenzhen-listed Leshi Internet Information and Technology Corp, a video-streaming unit of LeEco, announced late Thursday that it has sent a notice to LeEco founder Jia Yueting, reminding and asking him to fulfill his loan commitment to the company.

In a reply to a letter issued by Shenzhen Stock Exchange, Leshi said when the company was cash-starved in the first half of this year, its controlling shareholder Jia failed to keep his commitment of lending the capital he received by selling his stake in Leshi to the listed company because of the debt issues he himself was facing along with the LeEco's unlisted affiliated companies.

According to Leshi's announcement, between May 29, 2015, to Nov 28, 2015, Jia sold some of his shares in Leshi and made this commitments: he would lend all the money he received by selling his shares to the listed company; once he has received repayments from the listed company, he should use all the money to increase his share in Leshi; when he buys the same number of the share he sells, he should grant the balance of selling and buying shares as a gift to Leshi if the average purchasing price is below the average selling price.

Under the commitments, Jia made two reductions, which totaled a net transfer of 4.72 billion yuan (7 million). Since 2015, the biggest share of loan he has lent to Leshi after reducing his shares was 4.72 billion yuan, with a cumulative amount of 11.3 billion yuan, Leshi said.

In July, Jia resigned from all his positions at Leshi but still owns around 26.27 percent shares of the listed company as its largest shareholder, thepaper.cn reported.

In view of the assets of Jia been frozen since July and other conditions, there is considerable uncertainty about Jia's ability to fulfill his commitments, the company said.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58November 19 2017 18:05:24

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16November 19 2017 18:05:24

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18November 19 2017 18:05:24

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

Most Watched

News:
China World Business Sports Showbiz Audio
Video:
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
Photos:
China World Fun Travel Entertainment Sports
Travel:
Beijing Shanghai Guangzhou
Lifestyle:
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords