Jia Yueting, founder of Faraday future (hereinafter referred to as FF) and cpuo (chief product and user officer), attended the creditors' hearing in Delaware at 10:00 a.m. on December 6, EDT under the chairmanship and witness of the office of debt trust trustee under the Department of justice of the United States.The hearing lasted for up to four hours. At the meeting, Jia Yueting explained the issues raised by creditors such as personal assets, FF development prospects and FF global partnership plan, and said that considering the large-scale mass production of FF 91 in China and the United States, it was the first time FF proposed the large-scale mass production plan of FF 91 in China.
It's nearly two months since Jia Yueting filed for bankruptcy and reorganization on October 14 this year, but the road of Jia Yueting's bankruptcy and reorganization is hard to be smooth. As of November 6, only 23% of the creditors agreed with the plan proposed by Jia Yueting. According to California bankruptcy related laws and regulations, Jia Yueting's bankruptcy reorganization plan needs to be approved by more than 60% of creditors before it can continue to move forward. This directly led to Jia Yueting will restart voting. With Jia Yueting's going to court as a debtor this time, it means that Jia Yueting's bankruptcy and reorganization case begins to go to formal legal proceedings.
The reporter learned from the creditors who attended the hearing that although Jia Yueting had denied and clarified the rumors of "transferring assets and buying luxury houses" at the previous creditors' meeting, the issue of Jia Yueting's personal assets became the focus of discussion again at the beginning of the meeting. In particular, the transfer of ocean view to a third party after the establishment of Jia Yueting in 2014 was subject to multiple rounds of questions from the trustee and creditors of the trust.
In this regard, Jia Yueting's personal debt treatment group told reporters: "it can be said clearly that Jia Yueting has decided to transfer all the assets currently owned into the creditor trust after the scheme is approved. Ocean view has been transferred to a third party in 2017, and since it has mortgaged to the loan company many times before that, its assets were almost zero before the transfer. Now the company is only the lessor of Jia Yueting's residence and FF executive's temporary residence. "
Referring to the questions about personal living expenses, Jia Yueting said at the hearing that in addition to part of the work-related oil expenses and business entertainment expenses reimbursed by FF, the rest of Jia Yueting's personal living expenses are borne by his personal and family members. In addition, FF has strict approval procedures for the above expenses. Some FF executives disclosed to reporters that FF would be Jia Yueting's hope to pay off his debts completely. Previously, the recognition and high evaluation of FF products and technologies by creditors at the creditors' meeting enhanced Jia Yueting's confidence.
It is understood that after the settlement with Evergrande and the establishment of FF employee option pool, Jia Yueting held about 40% of the equity of FF at that time. Before making the global partnership plan and submitting the personal bankruptcy and reorganization application, we have made a detailed calculation on the distribution of 40% or so of FF equity held by him and his income right: the FF equity that will be transferred to the creditor trust has the income right of special shares, and the total income of this part of equity is far more than the income that FF global partner will get, and it is expected to occupy his original place About 70% of the income from holding FF equity.
On the partnership plan, Jia Yueting repeatedly stressed at the creditors' meeting that FF's global partnership plan is the cornerstone for FF to continuously attract high-end talents, maintain corporate vitality, improve internal management level and future development through governance structure innovation.
In fact, after several times of assets freezing and auction, Jia Yueting has few domestic assets. Applying for bankruptcy reorganization in the United States also means that Jia Yueting has given up almost all American assets. Next, to maximize the asset value of FF and creditor trust has become the only choice left by Jia Yueting, and the success of FF and the full repayment of creditors in the future are also the key for Jia Yueting to go out of bankruptcy reorganization and even get personal income.
"For him, if he wants to return to China in the future to rebuild his reputation and personal image, FF's success is a prerequisite. So I think he is very sincere this time. " The new chief executive of FF, Bi Fukang, said in an exclusive interview with the Securities Daily.
Previously, Jia Yueting said at the creditors' meeting that FF is a company recognized by the industry as having the world's leading products and technologies, which is also the reason why it can continuously attract top talents like Bi Fukang, the father of BMW I8, to join in. At the hearing, Jia Yueting said that although the mass production process of FF 91 has been slowed down in recent two years due to capital problems, the FF core team has continued to carry out product technology iteration and evolution of FF 91, and will consider large-scale mass production of FF 91 in China and the United States.
Under the guidance of the new strategy, FF will enter the Chinese market in the future or abandon the mode of heavy asset investment. "There are a large number of automobile manufacturers in China that are not fully utilized, and there are a large number of idle capacity. (coming to China in the future) we will see which local partners are most suitable to use their existing capacity to produce FF products. " Bi Fukang said.
Not long ago, on November 21, FF repeatedly delayed mass production of its first product, FF 91, for the first time to announce its interior, and made its debut at the Los Angeles Auto Show. Referring to the company's financing situation and product progress, Bifukang said that the company plans to raise a total of about $850m, and expects to complete the next round of financing in the first quarter of next year. The IPO opportunities will be sought after 12 to 15 months after the financing is completed and the funds are in place. In terms of products, the first electric vehicle FF 91 is planned to be delivered in September next year. It is expected that the first delivery volume will be about "hundreds of units".