LeEco’s founder Jia Yueting pleads for time to clear debts

BEIJING: LeEco chairman Jia Yueting asked for more time to repay debt and realise his ambitions of disrupting the automobile industry, days after a Chinese court froze billions of dollars in assets controlled by him and associated companies.

The increasingly beleaguered tycoon, who built his sprawling tech conglomerate on a Netflix-like streaming service and smart TVs, said in a Weibo post he’s decided to devote his time to developing a futuristic electric car.

He said he stepped down from his role as the chief executive officer of LeEco’s main listed company to focus on Faraday Future, the US-based startup now trying to raise funds to bring the FF91 electric car to fruition. “I sincerely ask everyone to give LeEco a little more time, to give LeEco’s car business a little more time,” Jia said.

“We’ll repay our debts to financial institutions, suppliers and everyone else.” Jia’s grip on LeEco, which he once portrayed as superior to Tesla Inc and Apple Inc, is slipping after expensive forays into cars and smartphones that stretched its balance sheet.

The entrepreneur told shareholders last week the cash shortage afflicting the conglomerate had worsened in past months, accepting blame for pushing too fast into those costly areas. LeEco has slashed costs and staff since last year, and considered asset sales to address its cash crunch.

But this week, a Chinese court ordered a freeze on 1.24 billion yuan ($182 million) worth of assets held by three affiliates of the company, Jia, and his wife, according to the Xinhua News Agency.