(Yicai Global) Jan. 6 -- Zhejiang Haosheng Electronic Technology Co. [NEEQ:838701], a manufacturer of electronic components, said Leshi Internet Information & Technology Corp. [SHE:300104], which trades as LeEco and its affiliates owe the company over CNY50 million in unpaid goods.
Although Leshi is allowed to repay in installments after arbitration, the company announced that it was suffering a cash crunch late last year and is unable to pay.
Haosheng Electronic Technology said LeEco's subsidiary Leshi Mobile Intelligent Information Technology (Beijing) Co. was supposed to pay a debt of CNY11,020,400 and USD5,923,000 to the company by November last year, with a guarantee from its parent company Leshi Holdings Co.
Per an earlier agreement between the companies, Leshi is allowed to repay in nine installments, with the first installment due Dec. 11, 2016. However, Leshi has made no payment so far.
Haosheng Electronic Technology submitted an arbitration application to the Shanghai International Economic and Trade Arbitration Commission on Jan. 3, demanding that Leshi immediately pay its debt and corresponding interest totaling CNY51,744,400, the announcement said.