Homepage / Technology / Cash-strapped LeEco CEO pledges to take all responsibility, repay debts
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Technology

Cash-strapped LeEco CEO pledges to take all responsibility, repay debts

Cash-strapped LeEco’s CEO Jia Yueting has pledged in an open letter on Thursday to take full responsibility and repay all debts.

“I will assume all responsibilities, and will do so until the end of LeEco’s employees, customers and shareholders,” Jia wrote in the letter. “Please give LeEco some time…I will repay all debts to the financial institutions, suppliers and anyone else we owe.”

It’s a big promise for Jia, who founded Beijing-based LeEco. The company was once a tech darling success story, starting with online video streaming before quickly expanding to smartphones and electric vehicles, and even launching in India and the U.S.

But the company’s fast ascent didn’t appear to be fueled by basic business sense, with LeEco spending far beyond its means and failing to replenish its coffers. The fallout from its cash crunch continued to widen: Earlier this week, 1.2 billion yuan (around $176.35 million) in assets owned by LeEco subsidiaries, Jia and his wife were reportedly frozen by a Shanghai court over unpaid debts.

LeEco’s woes also scuttled a $2 billion deal to buy U.S. television maker Vizio, hurt other related ventures and led to massive layoffs. Things got so bad last year that Jia cut his salary to 15 cents.

Shares of LeEco subsidiary, LeShi Internet Information & Technology, have dropped 14 percent in Shenzhen so far this year, before the stock was suspended from trading as of April 14 amid restructuring efforts.

— CNBC’s Barry Huang contributed to this report.

Source: Tech CNBC
Cash-strapped LeEco CEO pledges to take all responsibility, repay debts

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