Jia Yueting, a high profile founder of a struggling Chinese tech company LeEco, has been placed on a nationwide list of debt defaulters in China. The company that spends heavily to compete with firms like Huawei and Xiaomi reported to have failed to comply with a court order.
According to reports from China, Jia Yueting had his name and ID number published on a Chinese defaulters’ website. This is after failing to pay Ping An Security Group (Holdings) Limited $71 million (470 million Yuan), as ordered by the court.
The entrepreneur failed to pay his dues on December 11th, as ordered by the Beijing Number Three people’s court on 28th September.
The entertainment, electronics and electrical firm rapidly expanded its business to other countries. This step led them to cash troubles and multiple default issues.
LeEco expanded from video streaming roots to Smartphones, Televisions and automotive accessories. The company has tried to ambitiously venture into some key global markets including U.S and India. The expansion aimed at emulating its counterparts that have gained acceptance in countries outside China.
Effects of Appearing on the Defaulters’ Blacklist
Appearing on the defaulters’ blacklist denies someone a chance to enjoy luxury hotels, to travel abroad, to buying goods online, send their children to expensive schools, purchase airline and high-speed train tickets and even attending the golf clubs or golf club courses.
In July this year, Jia publicly stepped down as CEO of LeEco. A few weeks later, he admitted that the expansion plans they had were beyond their reach. However, during this time, about 1,400 employees lost their job from the company in different countries
On the other hand, reports from China says, Jia Yueting still has big dreams of revolutionizing his auto industry. He says he will do so via his startup Faraday Future.
Neither Jia nor any LeEco’s representatives were available to comment on the latest developing reports.