LeEco founder Jia Yueting has been ordered by the Chinese Securities Regulatory Commission to return to China before December 31. This is one of the many calls made by the regulator to the Chinese billionaire to come back home. He is said to be in the United States taking care of his electric car venture, Faraday Future, which is another company struggling with operations.
Earlier this year, Jia resigned from all of his positions in Leshi Internet Information & Technology Corp. But at the time of his resignation, he left LeEco in a very bad position mounted by debts. He is now being called by the regulator to fulfill on his promise made back in 2015 to provide interest-free loans to Leshi with the proceeds from the sale of his shares in the company. It is worth mentioning that he said in a letter back in November that he won’t be able to fulfil his promise of financial support to a LeEco subsidiary.
The regulator ordered Jia in an official statement yesterday, asking him to immediately return ‘home’ (China) and handle the situation. The statement further adds that ‘the debt has to be paid back’ and it has caused ‘extremely adverse social impact’.
The situation doesn’t look good for Jia right now. With mounting debts and Faraday Future struggling, it remains to be seen whether he will pay heed to the call from the Chinese regulator this time.