Introduction: According to the judgment of this court, if LeTV Mobile cannot repay the debts of the Music Fund on time, LeTV Holdings will hold the auction or sell the shares of LeTV.
According to the court's decision, if LeTV Mobile is unable to repay the Loan Fund's arrears on time, LeTV Holdings' shareholding in LeTV Chuangjing will be auctioned or sold by the court.
[Caiqing News Agency] (Reporter Li Jie) The litigation war between Lecong Fund Investors and LeTV Mobile has ushered in the court's decision after more than a year.
The Associated Press learned exclusively that the Shanghai Leyi Venture Capital Management Center (hereinafter referred to as “Leyi Fund”) has issued a judgment on the case of LeTV Mobile, Jia Yueting and LeTV Holdings, and the court ruled that the judgment is optimistic. The mobile reimbursement fund has a loan principal and interest of 530 million yuan. LeTV Holdings and Jia Yueting are jointly and severally liable.
The court also ruled that if LeTV Mobile does not fulfill its obligation to pay, Lecong Fund has the right to discount or 39.63% equity of LeTV Chuangjing Technology Co., Ltd. held by Leshi Holdings within the scope of the secured creditor’s rights. The proceeds from the sale of the pledged equity are given priority.
"According to the current status of LeTV Mobile, it is more difficult to pay 530 million yuan in the short term. The equity of LeTV Chuangjing Technology Co., Ltd. will be auctioned." A person familiar with LeTV told Cai Associate reporter.
LeTV VR main company or auction
According to the court's ruling, LeEco Holdings held a pledge guarantee for its loan of 39.63% equity of LeTV Chuangjing Technology (Beijing) Co., Ltd. And has registered for pledge. Now that the overdue repayment of the main debtor has constituted a breach of contract, it should bear the pledge guarantee liability according to the contract.
The data shows that LeTV Holdings pledged the 39.63% equity of Leshi Chuangjing to the Leyi Fund, with a quality equity of RMB 226.457 million.
At present, LeTV Holdings holds a total of 43.75% of LeTV Chuangjing, and Jia Yueting holds a 45.3% stake in the company through cross-shareholding. If the 39.63% stake in LeTV Chuangjing is successfully auctioned, LeTV Holdings will lose the position of LeEco's largest shareholder, and Jia Yueting will lose control of the company.
According to the Associated Press, LeTV Chuangjing Technology Co., Ltd.The investment is LeTV Virtual Reality Technology Co., Ltd., whose main product is LeTV VR.
LeTV VR was established at the end of 2015. In April 2016, LeTV VR launched its first product VR glasses, and on June 22, 2016, it conducted A round of financing, with a total financing amount of 300 million yuan. The investor is the Shenzhen Xingen Fund under the Xingen Capital.
At that time, LeTV VR was valued at about 3 billion yuan, becoming the highest valuation VR company in China at that time.
According to the judgment of this court, if LeTV Mobile is unable to repay the debts of the Music Fund on time, LeTV Holdings will hold an auction or sell the shares of LeTV.
"From the current situation of LeTV Mobile, LeTV Holdings and Jia Yueting, unless there are assets available for sale, the arrears of 530 million yuan can not be basically obtained. Plus the previous auction LeTV Holdings The holding of the Shimaogong three project flow, the funding problem in the LeTV holding system is not resolved in the short term, the equity of LeTV Chuangjing Technology will be auctioned to become a fact." The above-mentioned people familiar with LeTV told the Financial Union reporter.
However, whether the auction can be successful and whether the amount of the auction can cover the arrears is still unknown, but LeTV's valuation is significantly reduced compared with the previous period, which is considered by the industry to be a high probability event.
In September 2018, the court had auctioned 18.38% of the shares of Xinle Shizhi, which is held by Leshi Holdings, and 21.81% of the shares of LeTV Pictures, and finally Sunac China obtained the above equity at the starting price. The total amount is about 773 million yuan. At the time, the valuations of the new Le Shizhi and LeTV's auctions were significantly reduced compared with the financing. Among them, the valuation of Xinle Shizhi was nearly 14 times, and the valuation of LeTV's film was nearly doubled.
"At present, the main asset of LeTV Chuangjing is LeTV VR, and according to the current situation of the LeTV VR team's near dissolution, its valuation will also shrink significantly," said the source.
According to the Associated Press, after the LeTV and Jia Yueting exposed the capital chain problem, LeTV VR was also affected. In 2017, there were media reports that the LeTV VR team had been dissolved, leaving only a very small part. The person has also been transferred and the business is in a state of being cut.
"Before Xinle Shizhi and LeTV's auction, only one bidder was Sunac China, but Sunac acquired the above two companies.In order to normalize the business of the two companies, Sunac participated in the auction. However, LeTV Mobile has no equity relationship with Sunac. If Sun Hongbin does not shoot, there is basically no enterprise willing to bid for LeTV VR. In particular, the profit model of VR companies is still in the exploration stage, and the technology has not matured. An executive of an international asset management company told the Associated Press that
he further stated that if there were no bidders or the auction amount was insufficient to cover the balance of the debt, the Music Fund could also pursue LeTV Holdings and Jia Yueting’s guarantee responsibility.
It is worth noting that LeTV’s debt is high, and only LeTV’s and listed companies’ debts have reached 6.7 billion yuan.
Leyi Fund is deeply involved in the Le Shi
This time, the lawsuit was filed by Leyi Fund.
It is understood that the Lok Foundation was established in May 2015, and investors include Giant Sequoia Assets and Western Advantage Capital. A total of 11 partners, a private equity investment company specializing in the investment of LeTV's mobile convertible bonds, the total investment of the fund is 410 million.
May 21, 2015, Leyi Fund and LeTV Mobile, Jia Yueting and LeTV Holdings signed the “Loan Contract” and the “Investor Rights Agreement”, which is also the “Convertible Bond Project Contract”, which stipulates that the Lok Fund will lend RMB 410 million to LeTV Mobile. Three years, the borrowing rate is per 15%. And Jia Yueting and LeTV Holdings promised joint and several liability guarantee for the debt under the convertible bond project.
The Yuefu Fund lends 410 million yuan to LeTV Mobile on June 1, 2015. However, LeTV, LeTV Holdings and Jia Yueting did not fulfill their redemption obligations as agreed on the redemption date (May 31, 2017).
Information shows that as of May 31, 2017, LeTV Mobile still The loan amount of the loan fund is 410 million yuan, and the interest on the loan is 233 million yuan. The principal and interest of the above loan are 533 million yuan.
The agreement stipulates that LeTV Mobile will not return if it is overdue. Borrowing, the Lexi Entrepreneurship Center has the right to recover the loan and add a penalty of five tenths of a day according to the bank regulations.
After consultation, Leyi Fund and LeTV Mobile on June 6, 2017 Japan signed the "Instalment Repayment Agreement" and the "Supplemental Agreement", stipulated that LeTVThe company will settle the above debts in installments. In order to guarantee the above debt performance, Jia Yueting and Leshi Holdings respectively signed the “guarantee contract” with the Leyi Fund and provided the corresponding equity pledge guarantee.
The installment repayment plan is that LeTV Mobile will repay the Lok Fund with a principal amount of not less than 1% on July 5, 2017, which is RMB 4.1 million, which will be followed on August 31, 2017, 2017. On December 31 of the year, February 28, 2018, and May 31, 2018, the principals of 19%, 30%, 20%, and 30% were repaid in four phases, respectively, at 77.9 million yuan and 123 million yuan respectively. , 82 million yuan, 123 million yuan and all interest.
But as of now, LeTV Mobile only repaid 4.10 million yuan, and the subsequent four periods of principal and interest were not repaid.
On July 12, 2017, Leyi Fund will report to LeTV, LeTV Holdings and Jia Yueting to the court.
After more than a year, the court recently announced the first-instance judgment. The court held that the case was a private loan dispute, and the original and the defendant signed the "Loan Contract" and the "Amortization Agreement". The Supplementary Agreement, the Guarantee Contract and the Equity Pledge Contract are all established in accordance with the law and both parties should abide by them. The defendant LeTV Mobile has not returned all the principal and interest of the loan as scheduled, which constitutes a breach of contract and should be liable for breach of contract according to the contract; the defendant LeTV Holdings and Jia Yueting shall bear the guarantee obligations stipulated in the contract.This article was written by the author of the cutting-edge technology. The views represent only the author and do not represent the OFweek position. If you have any infringement or other problems, please contact us.