China’s internet giant LeEco, known as Le Holdings Ltd., suffers further financial crisis as assets worth RMB 1.24 billion (USD 182 million) owned by founder Jia Yueting, his wife and three LeEco companies have been seized by the Shanghai High People’s Court, reported Chinese media on Monday.
The assets freeze was requested by China Merchants Bank on June 26. The bank claimed that LeEco refused to pay back loan interests despite urging them several times.
LeEco told local media that the freezing of assets was caused by a loan borrowed from China Merchants Bank for its cell phone branch. LeEco also claimed that the pawned assets are able to cover the loan.
The Beijing News reported on Monday that the legal representative of Le Holdings Ltd. has been changed from Jia Yueting to Wu Meng on June 13.
A veteran at LeEco, Wu has been working closely with Jia for 15 years. He had worked for a bank in Jia’s hometown in central China’s Shanxi province from 1992 to 2002. In 2003, he joined Jia’s first company in Beijing, and has been working as a high profile manager for a number of LeEco companies.
Prior to being removed from his post as legal representative at Le Holding Ltd., Jia resigned as the general manager of Le Holding Ltd.’s listed branch Leshi Internet Information & Technology Corp. in May.
Despite LeEco’s recent turbulence, Jia still controls Le Holding Ltd. with a total share of 92.07 percent, according to public records.