(Yicai Global) Jan. 2 -- The months-long dispute between cash-strapped US-based electric carmaker Faraday Future and its major shareholder, a unit of Chinese property developer Evergrande Group, seems to have come to an end. 

Evergrande Health has penned a restructuring agreement regarding its planned USD2 billion investment in Faraday Future, helmed by Chinese serial entrepreneur Jia Yueting, which will lower Evergrande's stake to 32 percent from 45 percent while releasing its control over the car firm's pledged assets, according to a release that the Hong Kong Stock Exchange published on Dec. 31 on behalf of the Guangzhou-based firm. All ongoing litigation between the two parties will be dropped. 

The deal means that Faraday Future, which has had to send some of its staff on unpaid leave, will now be able to seek debt and equity financing to roll out its first product, the luxury sport utility vehicle FF91, with planned deliveries in the first quarter of this year. The Los Angeles-based company has already started negotiations with several potential investors from around the world, The Verge reported on Dec. 31. 

The agreement enables Evergrande Health to focus on its business development and to support the JV to find financing and develop, the firm said in the release to the bourse. Evergrande, controlled by Chinese property tycoon Hui Ka-yan, was supposed to give USD600 million this year to the car company and USD600 million in 2020 based on the original agreement. Now the investor is no longer required to pay up. The car firm may seek to acquire Evergrande's stake in five years.

Evergrande FF Holding, a Hong Kong-based unit of Smart King, will own Faraday Future's assets located on China's mainland, including 401,000 square meters of land in Nansha district in Guangzhou, which may pave the way to use the carmaker's intellectual property rights toward a China-made product. Evergrande acquired Season Smart, which owns 45 percent of joint venture Smart King that controls Faraday Future, for HKD6.75 billion (USD860 million) in June.

Evergrande gave Faraday Future USD800 million early last year, which the car company used to build a factory in Hanford, California, and to hire a workforce in excess of 1,000 people. In July, the cash was all gone. As Evergrande closed the funding tap and Faraday Future had no product or assets to offer as collateral for more investors, the two parties sought arbitration in Hong Kong in October.

Leshi Internet Information & Technology [SHE:300104], an internet company established by Jia, rose the daily upper limit of 10 percent to CNY2.74 (40 cents) this morning.

Evergrande Health [HKG: 0708] rose 3.88 percent to HKD10.70 (USD1.4) as of at 10.31 a.m.

Editor: Emmi Laine