LeEco calls on Jia Yueting to fulfill fund commitments
LeEco said since Jia's assets are currently frozen, it is uncertain whether he will follow through
LeEco’s board of directors issued a letter on Thursday urging controlling shareholder Jia Yueting to continue to fulfill his fund commitments, China Securities Journal reported.
According to the notice, since 2015, Jia has reduced his stake in LeEco and lent a cumulative amount of 11.3 billion yuan (US$1.7 billion) to support the operation of the internet company, as per an agreement. However, Jia stopped lending money to the company since the first half of this year.
On Thursday evening, the company filed a statement to the Shenzhen Stock Exchange, urging Jia to fulfill his commitment to lend it capital.
At the same time, the company admitted it is uncertain whether Jia will be able to fulfill the commitment as his assets are currently frozen. Trading in the company’s shares have been suspended since April 17.
Jia has left all of his positions in LeEco, but still remains the largest shareholder of the company.