Chinanews client, Beijing, July 24th (Zhang Xu) LeTV’s delisting on the 21st is not the end of LeTV’s collapse. Jia Yueting, who is far away from the United States, still has not returned to China, but his wife Gan Wei, who has had a divorce dispute with him for nearly a year Also caught in the vortex of LeEco's debt crisis.
After Gan Wei was restricted from leaving the country by the court on July 8, the Ali Judicial Auction Platform showed that a property of nearly 200 square meters in Beijing under Gan Wei's name will be auctioned publicly with a starting price of 15.45 million yuan. According to the court's execution ruling, the other three properties of Jia Yueting and Gan Wei in Beijing have also been sealed up and will be auctioned.
Picture from Alifa
Ten million real estate, 30% off auction
According to the Alifa auction page, Gan Wei's auction house is located at No. 26, Xinzhuang 1st Street, Chaoyang District, Beijing, which is also the "star-studded" Oceanwide International Residential Area·Lanhai Park. The property will be publicly auctioned from August 28th to August 30th.
The auction information shows that the building area of the property is 193.59 square meters; the exclusive building area is 152.95 square meters, and the apportioned building area is 40.64 square meters. The property also has a parking space worth 470,000 yuan. The assessed price is 22.06 million yuan, and the starting price is 15.45 million yuan, which is about 30% off.
Bidders need to pay a deposit of 1.55 million yuan, and the price increase for each auction is 70,000 yuan and its multiples. No one has signed up yet, but 239 people have set up reminders, and the crowd is as high as 13,000.
Picture from Alifa
Why was the above-mentioned property auctioned? This stems from a multi-billion dollar loan from China Merchants Bank and LeTV, and Gan Wei has been restricted from leaving the country due to a debt recovery lawsuit by China Merchants Bank.
On July 8, the Shanghai Higher People's Court website revealed that Gan Wei had been restricted from leaving the country in accordance with the law for failing to perform the obligations determined by the legal documents. The applicant is China Merchants Bank Co., Ltd. Shanghai Chuanbei Branch, and the amount of the execution target is approximately 533 million yuan. The ruling document provided by the auction announcement is exactly the document that Gan Wei was restricted from leaving the country.
The lawsuit between the Chuanbei branch of China Merchants Bank and Gan Wei is related to a loan of 2.7 billion yuan applied to China Merchants Bank by Lefeng Mobile Hong Kong Co., Ltd., the operator of LeTV's mobile phone business.
In this loan, LeTV Mobile, LeTV Holdings, Jia Yueting, and Gan Wei jointly issued the "Maximum Irrevocable Guarantee Letter", promising to assume joint guarantee responsibility for the loan of Lefeng Company.
Jia Yueting pledged 19.52 million shares of LeTV for the loan, and Lefeng pledged 897 million shares of Coolpad. In June 2017, it failed to fulfill its obligation to make up the guarantee deposit as agreed, and failed to pay the current interest on June 20, 2017 as agreed. China Merchants Bank took the four guarantors to court and demanded that the four parties bear the contract.
Screenshot of Shanghai High People's Court website
In the first instance, Gan Wei had argued that she was not a party and that the name on the guarantee was signed by Jia Yueting, but the court did not accept it.
On June 26, 2017, China Merchants Bank Shanghai Chuanbei Sub-branch applied to freeze the assets of the LeTV department totaling 1.237 billion yuan, and was supported by the Shanghai Higher People's Court.
In this case, after the two parties have repeatedly fought over jurisdiction and other matters, the court pronounced on January 24, 2019: Lefeng Company shall repay the principal of the CMB Chuanbei Sub-branch of HK$552 million and the interest of HK$22 million within ten days after the judgment becomes effective. Penalty interest of HK$40 million and overdue interest up to the date of actual settlement. Jia Yueting, Gan Wei, LeTV Holdings and LeTV Mobile assume joint and several guarantee responsibilities for payment obligations.
The ruling document provided by the auction announcement shows that when the Shanghai No. 1 Intermediate People’s Court enforced the above-mentioned case ruling in June 2019, because the executors such as Jia Yueting and Gan Wei failed to fulfill their obligation of repayment, the two persons’ names were located in Beijing. Room 1801, Unit 1, 16th Floor, Building 21, Gongti North Road, Chaoyang District, Room 2003, Unit 4, 20th Floor, Building 6, No. 2 District, Shuanghuayuan South Li, No. 1240, Floor 1, Building 7, Xinzhuang First Street, No. 26 (parking space), The real estate in Room 1101, Unit 1, 10th Floor, Building 2, No. 26, Xinzhuang First Street, was sealed up, and in November of the same year, the Shanghai No. 1 Intermediate People's Court ruled that all these properties should be auctioned off.
Data map. Jia Yueting.
Once a bird of the same forest, now they fly separately?
Jia Yueting and Gan Wei once had an enviable life.
According to media reports, in 2004, Jia Yueting came to Beijing to start a business. Gan Wei, who was still in her sophomore year, met Jia Yueting at a dinner. The two men, who were 11 years apart, got married four years after they met.
"Beijing" Jia Yueting founded LeTV in 2007 and made Internet video services his business focus.
As LeTV purchased a large number of film and TV series copyrights at low prices, and stepped on the trend of video website transformation, LeTV gradually developed and expanded. In 2010, it was officially listed on the Growth Enterprise Market and became the "first share of A-share online video."
In May 2015, the market value of LeTV once touched 170 billion yuan, and Jia Yueting, who holds the grand vision of the "seven major ecology", is infinite. In 2016, Gan Wei gave birth to another son. It was the same year that LeTV became the "No. 1 heavyweight stock on the Growth Enterprise Market." In the same year, Jia Yueting ranked 31st on the 2016 Hurun Report with a fortune of 42 billion yuan.
At that time, Gan Wei was not only Jia Yueting's good internal helper, but also an entrepreneur with a halo. In June 2015, Gan Wei established Le Yang Film and Television, and in 2016, the "Prince Concubine's Promotion", which he produced, became popular all over the Internet.
In June 2015, Gan Wei founded Le Yang Film and Television. Data from Sky Eye Check
But the glorious moment did not last long. In November 2016, Jia Yueting, who is obsessed with building cars, admitted in an internal letter that LeTV had a financial chain crisis. In July 2017, Jia Yueting resigned as CEO of LeTV and continued to “build cars” in the United States.
After Jia Yueting left the United States, Gan Wei stayed in China to help deal with the debt problem. On December 31, 2017, returning from the United States, Gan Wei officially announced that he and Jia Yueting's brother Jia Yuemin will exercise the shareholder rights and fulfill shareholder responsibilities of listed companies and carry out asset disposal work.
By 2018, Gan Wei has always supported Jia Yueting. On January 3, 2018, Gan Wei published an "Inner Monologue of a Wife", describing Jia Yueting's great car dream, and still firmly believe that Jia Yueting is the "hero" in her heart.
But the mess left by Jia Yueting dragged her into the quagmire. In March 2018, due to disputes with Zhongtai Chuangzhan, Jia Yueting, Gan Wei, and LeTV Holdings were listed as untrustworthy enforcers.
Subsequently, their marriage also seemed to come to an end. On October 11, 2019, Jia Yueting and Gan Wei applied for divorce at the People's Court of Jinjiang District, Chengdu.
A document in Jia Yueting's application for personal bankruptcy and reorganization in the United States shows that Jia Yueting's wife, Gan Wei, voluntarily filed a divorce lawsuit and has submitted proof of asking for property of approximately US$571 million (approximately 3.98 billion yuan).
The Jia Yueting debt handling team stated that after the tripartite negotiation of Jia Yueting, Gan Wei and the debt committee, Gan Wei gave up the priority to divide the joint property of the husband and wife. After the establishment of the creditor trust, all creditors will be repaid on an equal basis, and the claims of rights only account for About 13% of the total trust amount. This means that only with the success of Jia Yueting's bankruptcy and reorganization combined with the success of Faraday Future, can Gan Wei be able to get repayment of funds with all creditors.
But the status quo of Faraday's future is not optimistic. According to documents submitted by Jia Yueting to the court in early 2020, as of December 31, 2018, Faraday Future’s cash and restricted cash totaled only US$7.4 million and a working capital deficit of US$579.1 million. As of July 31, 2019, the company had accumulated losses of US$2.15 billion and liabilities of US$801 million.
Weibo article published by Jia Yueting on July 2.
On July 2, before LeTV’s delisting, Jia Yueting publicly announced that he had completed his personal bankruptcy reorganization on June 26. He also said that investors will be compensated. "After getting the approval of my personal creditor committee, I have set aside no more than 10% in the creditor’s trust, which is mainly used for contingent compensation for LeTV stockholders. It can be implemented after completing the relevant legal procedures. A special team will also be arranged to coordinate the compensation of LeTV shareholders."
However, LeTV subsequently issued a document stating that all LeTV shareholders are not creditors of Jia Yueting’s personal debts. The company currently cannot determine whether future LeTV shareholders can apply for compensation to Jia Yueting, nor can it determine whether the above reserved trust assets will compensate LeTV shareholders. Feasibility, please pay attention to risks and invest rationally.
Whether it is for investors or Gan Wei, Jia Yueting's compensation is still theoretically possible. (Finish)