LeEco founder Jia Yueting will pay debts to Leshi, report claims

Leshi Internet Information and Technology, the Shenzhen-listed arm of debt-laden technology company LeEco, announced on Friday that it recognized about 6.7 billion yuan ($978.9 million) in total debt by the company and non-listed units of LeEco, according to a report by Securities Daily.

Shenzhen Stock Exchange sent an inquiry to Leshi on Tuesday, asking Leshi to supplement details on issues such as reaching a recognized debt scale of about 6.7 billion yuan with the non-listed LeEco companies, and to verify and explain the differences between its credit rights and liabilities recognized this time and those announced previously.

LeEco founder Jia Yueting will reportedly pay the company's debts to Leshi, and that LeEco has already paid 263 million yuan in debt and reached a 4 billion yuan debt repayment plan with Leshi, according to the report.

Leshi's stock price climbed by its daily limit to 2.29 yuan per share on Tuesday, with a daily turnover of 900,400 hands and a transaction value of nearly 200 million yuan.

On Tuesday evening, Leshi clarified its progress toward resolving the debt issue with LeEco's non-listed units. The company announced that the developments and effects of the debt resolution are facing risks, as the validity of the debt assignment may change due to changes in the overall debt solution for related parties of LeEco's non-listed units or the debt problems of the related parties themselves.

As the existing debt solutions involve the assignment of debt and asset disposal, Leshi has not yet received any cash paybacks, meaning the current plan cannot provide cash support to directly relieve Leshi from the financial distress caused by a lack of funds.