After a turbulent year which saw Chinese technology conglomerate LeEco fall from leniency, the company’s billionaire founder was recently dealt yet another blow.
Jia Yueting, LeEco’s be wrecked, was added to a nationwide list of debt defaulters after he failed to accept orders from a court order, local newspaper China Daily reported on Tuesday.
Jia hasn’t repelled over to Ping An Securities Group the roughly 477 million yuan ($72 million) he was ordained to pay by a Beijing court on Sept. 28, according to information available on a conspicuous database. Jia’s name and ID number were also included in the database going in.
That database, which is maintained by the Supreme People’s Court, blacklists living souls and corporations that have failed to repay their debts. It was initiated in 2013 as part of China’s attempt to encourage rule of law.
Those whose honours are logged into the system can face a host of restrictions, including air go bans, for failing to obey court judgments.
Representatives from LeEco did not as soon as respond to an emailed request for comment.
The company, which sold entire lot from televisions to electric vehicles, once had grand ambitions of captivating on U.S. tech giants. LeEco pushed ahead with a large-scale U.S. spread in 2016.
Its dreams for global domination crumbled, however, when it became unmistakable that the company faced serious cash flow issues.
In July this year, Jia stoop proceeded down from his position as chairman of LeShi Internet Information and Technology — LeEco’s might listed unit — so that he could focus on LeEco’s automobile module. He promised to repay debts owed by the company.
It’s unclear whether the latest evolvement will have an effect on Jia, who is reported to be based in the U.S. He has not appeared publicly in China since Trek, online new site Quartz reported.
— CNBC’s Qian Chen bestowed to this report.