Tianjin Court Lists Leshi Holding, Leshi Mobile as 'Dishonest Debtors'
Dou Shicong
DATE:  Sep 12 2017
/ SOURCE:  Yicai
Tianjin Court Lists Leshi Holding, Leshi Mobile as 'Dishonest Debtors' Tianjin Court Lists Leshi Holding, Leshi Mobile as 'Dishonest Debtors'

(Yicai Global) Sept. 12 -- A Tianjin court has added Leshi Holding Beijing Co., the holding company for the struggling LeEco conglomerate, and Leshi Mobile Intelligent Information Technology Beijing Co., a subsidiary of the brand's listed arm, to a list of 'dishonest debtors,' referring to organizations or individuals who refuse to comply with legal obligations despite being capable of doing so, Chinese news outlet The Paper reported.

LeEco hit a cash crisis last November after running up debts with suppliers. Its founder, Jia Yueting, resigned from his roles as chief executive and chairman in May and June this year, respectively.

The two companies added to the list are in two cases adjudicated by the No. 2 Intermediate People's Court of Tianjin. It ordered them to repay debts of CNY107 million (USD16.43 million), but neither complied, hence their inclusion on the list.

A spot on the list results in nationwide credit penalties against their eligibility to take part in government procurement or tender activities, government subsidies and market access, administrative approval and business accreditation.

Changzhou Li Sheng Technologies Co. and AAC Technologies Holdings Inc. [HKG:2018], both Leshi Mobile suppliers, filed the cases against the LeEco units, the report added.

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Keywords:   Leshi,Dishonest Debtors,Legal,LEECO,Tianjin