Biz / Tech

Leshi slapped with 33 lawsuits totaling US$235 million

Zhu Shenshen
LeEco, the parent of Leshi, is found to lack capital necessary to run its business
Zhu Shenshen

Leshi Internet Information & Technology Co, the listed firm of debt-laden LeEco, said today it is involved in 33 ongoing lawsuits worth over 1.62 billion yuan (US$235 million) in unpaid debts.?

Shenzhen-listed Leshi has halted trading of its shares for several months since LeEco was found to lack capital needed to operate its business which covers online video, TV, smart phone, film production and new energy car.

Thirty-three companies, including publishers and electronic component suppliers such as state-owned Zhejiang Radio &TV Group and Taiwan-based Compal, have sued Leshi for unpaid debts, which amounted to 1.60 billion yuan and US$3.73 million.

Leshi posted a loss of about 640 million yuan in the first half, a reversal from a profit of 280 million yuan a year ago, the firm said.

In January, cash-strapped LeEco secured a US$2.2 billion investment from a group led by property developer Sunac China Holdings.

Leshi and its new investor pleaded with suppliers and investors for “more time to repay debts and a rebound in business,”  the company said last month.

Leshi’s business covers online video, film production and smart TV, which comprise the best assets of LeEco.

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