Nuked Tycoon Jia Yueting filed for Chapter 11 to deal with $ 3.6 billion in personal debt. The tycoon founder of Faraday future filed for bankruptcy seven months ago.
The majority of people and companies he owes money to have agreed to swap their debt claims for parts of Jia’s ownership stake in Faraday future. They now only have a shot of being made whole if and when the struggling startup successfully completes a public listing on a major stock exchange.
Faraday future has spent more than $ 1.7 billion (around $ 900 million) on its own. The startup has yet to start manufacturing its first vehicle, a luxury SUV stuffed with screens known as the ff91. By its own admission the company needs $ 850 million in order to kickstart production of the ff91.
Jia repeatedly claimed in court that prolonged uncertainty about his personal debts would hold up any potential funding of Faraday future. In December of last year, in fact, one of Jia’s lawyers told the court that Faraday future did not have the’wherewithal’.
Lawyers for some of the companies Jia owes millions to made similar arguments in court that were ultimately unsuccessful. One former Faraday future executive said they felt this was a’gun to the head of the creditors’.
Faraday future said it received a $ 9 million loan as part of the government’s pandemic-related’paycheck protection program’.
Jia does n’t have nearly enough personal wealth to cover the $ 3.6 billion hole he dug for himself. Although that’s true, their total value is only in the tens of millions of dollars.
Jia’s bank accounts are relatively empty, according to the documents he submitted to the court. He borrowed $ 2.7 million from one of Faraday future’s holding companies to launch his bankruptcy in October of last year.
