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Just when the first personal bankruptcy case was successfully settled in China, Jia Yueting, who announced that he gave up everything a month ago and paid off his debts, has recently taken a new move in debt processing.

News NewSeed (ID:pelink) was informed yesterday that a Weibo account named “Jia Yueting Debt Processing Team” issued the “Declaration on Mr. Jia Yueting’s Personal Bankruptcy Reorganization and Establishment of Creditor Trust” (hereinafter referred to as “Declaration”) It means that Jia Yueting has applied for personal bankruptcy reorganization on October 13th in the United States according to Chapter 11 of the relevant US law (chapter 11).

At the same time, a creditor trust is established and all assets in the United States are transferred to creditors when the conditions are met. After the completion of the program, Jia Yueting will no longer hold any stake in FF’s controlling parent company Smart King.

Although Jia Yueting did not respond to this matter on social media, the Faraday Future (hereinafter referred to as “FF”), which was founded by him, also issued a statement simultaneously stating that the company’s founder and CPUO Jia Yueting applied for personal bankruptcy in the United States. Restructuring, this will completely solve its domestic debt problems, will not affect the normal operation of FF companies, and will bring positive help to the company’s equity financing and future IPO.

Jia Yueting is carrying a serious credit crisis due to the huge debt problem. Therefore, even if the personal bankruptcy and restructuring in the United States is successful, it is still unclear how much the future financing and IPO plan of FF can play.

Bankruptcy reorganization is the optimal solution, but when you return to the country is still unknown

According to the Statement, after the ban of the British Virgin Court was lifted, Jia Yueting will recognize all personal assets recognized by the US courts, ie all FF shares held by individuals and related The right to income is formally transferred to the creditor trust;The trust is controlled and managed by the creditor committee and trust trustee.

It is understood that Jia Yueting will also provide creditors with three additional guarantees: First, creditors still retain the right to dispose of all Chinese assets that Jia Yueting and other direct debtors have been frozen; second, except Jia Yueting The original debtor and guarantor continue to perform their debt repayment obligations; thirdly, compared with the previous right to claim debts from the guarantor Jia Yueting, according to this scheme, all creditors have the legal right to participate in the Jia Yueting through the creditor trust. The disposal of assets and the related benefits are equivalent to obtaining strong debt service guarantees at the legal level.

At the same time, the “Declaration” also stressed: “This is the best solution for Mr. Jia Yueting to solve personal debt problems and protect the interests of creditors.” Because under the US legal framework, there are bankruptcy liquidation (Chapter 7) and bankruptcy reorganization (Chapter 11) In two ways, the former is less difficult than the latter and can directly exempt all personal debts, but the latter has a greater possibility of giving creditors greater repayment, thereby reducing creditors’ access to only a small portion of debt. The risk of repayment.

As for the amount of debts that need to be repaid, the “Declaration” stated that more than 90% of Jia Yueting’s debts are debts guaranteed for the company. Up to now, he has repaid debts of more than $3 billion for the company, and the total debt to be repaid is about 3.6 billion. US dollars, minus the frozen domestic assets to be disposed of and the convertible bonds, the net debt is about 2 billion US dollars.

It is worth noting that the “Declaration” also mentioned that after the completion of the personal bankruptcy reorganization plan, Jia Yueting will transfer all the FF shares and related income rights held by the individual to the creditors, and the personal guarantee obligations and debts will also be Can be lifted, so that you can return to the country to promote and implement the FF China-US dual home strategy.

Some media interpret this as a personal bankruptcy, Jia Yueting can fulfill the promise of returning to China, and the “return to China next week” will become a reality. However, due to the judicial system between China and the United States, there are very few cases of mutual recognition of judicial decisions. Therefore, even if the US court decides that Jia Yueting’s personal bankruptcy and restructuring is successful, Chinese courts may not recognize it. Therefore, when Jia Yueting returned to China, it is still an unknown number.

FF experienced the biggest personnel change, Bi Fukang needs to learn from Laojia

In early September this year, FF just experienced the biggest personnel change since its inception. Founder Jia Yueting officially retired as CEO of the company and succeeded as CPUO (chief product and user officer), and Dr. Bi Fukang, who is known as the “father of BMW i8”, officially took over the former and became the global CEO of FF.

According to the announcement issued by FF at the time, in the short term, Bi Fukang will lead the team to sprint the first ultra-luxury intelligent Internet.The mass production of the “new species” FF 91 electric vehicle was prepared, and the final development of the next large-scale mass production luxury model FF 81 intelligent electric vehicle was completed. Jia Yueting will be responsible for the overall implementation of the Internet ecosystem strategy, leadership work intelligence, product definition, user acquisition, user experience and user operations. In addition, FF will also openly recruit a global chairmanship.

For the reasons for choosing to cooperate with Jia Yueting and joining FF, Bi Fukang said that there are three main points: “One is Mr. Jia Yueting; the second is the leading products and technology of the FF industry; the last is the global partner system.”

Bei Fukang is equally clear that the priority now is to raise funds. “For the first phase, there are still hundreds of millions of dollars in funding gaps for all these things to happen.”

But it’s because of the financial crisis that the financing crisis has left Bifengkang’s Bi Fukang. I am afraid that in the process of raising funds, it is necessary to “take the classics” from the former CEO Jia Yueting.

Reviewing the past, after Jia Yueting’s failure to operate LeTV and the financial crisis in the United States, he has ushered in three “white knights” with strong financing capabilities.

On January 15, 2017, after only one month of continuous adjustment, Sun Hongbin invested 15 billion yuan in LeTV, Lerong Zhixin and LeTV. After Jia Yueting announced his resignation as the chairman of LeTV, Sun Hongbin had to take over the position of chairman, but he still had not reversed the decline of LeTV. In the end, Sun Hongbin was “incapable of returning to the sky” and thus reluctantly ended his career as Chairman of the Board for more than 200 days.

After that, Xu Jiayin, who is not bad, came. On June 25, 2018, Evergrande Health Group, a subsidiary of Evergrande Group, announced that it had acquired 100% of Hong Kong Shiying Company for HK$6,676.7 million and became the largest shareholder of Smart King. After only three months, the situation changed suddenly. Jia Yueting sued Evergrande with a paper complaint. Until the end of last year, the dispute between the two parties lasted for several months and the settlement ended. All the original agreements were terminated.

Afterwards, Zhu Jun, the chairman of the ninth city, appeared. According to the agreement between the two parties, Jiucheng will inject up to 600 million US dollars into the joint venture company in three equal installments, and have operational control. However, at present, there is no substantial progress in the cooperation between the two parties.

Conclusion

On the night of leaving the FF CEO, Jia Yueting wrote on Weibo: “I gave up everything, just to make FF, and fully repay the remaining guarantee debt as soon as possible to realize the transformation of the automotive industry. Dream.”

A word is now awkward, Jia Yueting really gave up everything, LeTV, FF CEO and chairman of the board, the relevant equity rights will no longer belong to him.

As for when Laojia will return to China, let us wait and see.

Attachment: “About Mr. Jia Yueting’s personal bankruptcy restructuring and establishment of debtStatement of the Charter of the Trustee Trust”