A comprehensive report by Chen Yuxi, a surging journalist
On May 22, after seven months of application, negotiation, voting and court confirmation, the personal bankruptcy reorganization case of the closely watched Faraday Future (FF) founder and CPUO Jia Yueting (YT) was finally confirmed and approved by the Central District Bankruptcy and Restructuring Court of California at a hearing held on May 21, local time in Los Angeles.
Jia Yueting's debt processing team said that it is very grateful for the fair judgment of the Central District Court of California, as well as for the understanding and support of all creditors, including those who voted against. Mr. Jia Yueting will continue to work closely with the debt Committee and the creditor trust trustee, treat all creditors equally, and continue to treat FF The value will be bigger and stronger, and then the trust value of creditors will be continuously enlarged to fulfill their commitment to the end.
Since July 2017 in the United States, there is a large amount of domestic debt to be repaid, included
On March 19, 2020, the central bankruptcy court of California officially approved Jia Yueting's disclosure statement of bankruptcy reorganization assets and the application for dip loan. On March 31, Jia Yueting's personal bankruptcy reorganization case opened the creditor voting process. On May 8, Jia Yueting's personal bankruptcy and reorganization plan was voted, and more than 80% of the creditors voted to accept it. On May 21, the central bankruptcy court of California held a hearing on Jia Yueting's personal bankruptcy reorganization.
According to reports, after the personal bankruptcy and reorganization plan came into effect in early June, Jia Yueting will also transfer all of his current FF shares to the creditor trust. As the founder of FF, Jia Yueting will no longer own any FF shares, and the company's daily management rights will also be delivered to Bifukang, the Global CEO of FF, but will continue to be FF global Cpuo (chief product and user ecology officer) and global partner status participate in FF's operation.
However, the effectiveness of personal bankruptcy reorganization does not mean that Jia Yueting will get rid of the debt and have no worries. The final repayment of creditors is related to whether FF can be achieved and listed to some extent.
According to an introduction of Jia Yueting's reorganization plan on the website of Jia Yueting's bankruptcy and reorganization project, the trust will employ an independent trust trustee for daily management and maintenance. The first trust trustee is the chief lawyer of the creditor Committee, and the creditor committee will invite five creditors to establish the trust management committee. The bankruptcy plan also makes detailed regulations on how and when to dispose the trust assets: for the FF equity directly held by the trust, except for bankruptcy liquidation or maturity of the trust, the creditor trust trustee can only dispose FF equity after FF IPO, and the plan also stipulates the proportion of FF equity sold in the trust on an annual basis after IPO.
In addition to his rights and interests in FF, in order to win the support of his creditors, Jia Yueting no longer requires the cancellation of China's debt guarantee until the approved debt repayment amount reaches the agreed proportion; the approved creditors will have the right to continue to hold the claims in China and dispose of all the frozen or mortgaged and pledged assets of Jia Yueting.
For Jia Yueting, he can also obtain the corresponding commitment of the creditor: that is, within four years after the effective date of the plan, he shall not directly claim the individual responsibility of Jia Yueting in any jurisdiction other than the United States (within the United States since the effective date of Jia Yueting's personal debt relief), or file any new claim in the name of Jia Yueting's creditor (including Jia Yueting's separate claim and joint claim) Cause of action.
If Jia Yueting's personal bankruptcy reorganization case takes effect, it may promote FF's financing process. According to FF insiders, in addition to the strategic cooperation with the U.S. hybrid power company on Powertrain, FF has entered the signing stage with another U.S. partner, and the cooperation and negotiation with a Chinese enterprise are progressing smoothly, which is about to enter the landing stage.