How are things with LeEco? Spoiler: not really

How are things with LeEco? Spoiler: not really

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The attempt of the Chinese company LeEco to make a forced March to the American market, and suddenly his win was more unsuccessful than expected. Thrown into this venture, the money burned a big hole in the pocket of the company that even the Chinese authorities, usually applying to the nation the practice of protectionism, decided to tackle the fraudulent debtor.

This week it became known that the Commission of China on regulation of securities market (CSRC) demanded that the head of LeEco Za Outing returned to Beijing by the end of the month and deal with the debts of the company. According to the statement on the non-payment of debts “is a serious violation of the legitimate rights and interests of creditors and investors, which will have a tangible negative impact on society”.

Shares of the company Leshi Internet Information and Technology Corp., which includes LeEco, traded on the Stock exchange Senjana until April of this year, after which trade was suspended in connection with the restructuring of the company. To Finance their adventurous undertaking, such as the development in the United States an Autonomous electric vehicle Faraday Future, LeEco borrowed from investors billions of dollars.

LeEco expansion outside of China turned into a fiasco, and in July of this year Zia left the post of Chairman of the Board of Leshi, promising social networks to repay debts LeEco. Judging by the recent statement of the Chinese authorities, and this time something went wrong.