Revealing the facts and secret plot of the dispute between Evergrande and Jia Yueting | brian supra, vbet888, pola gacor princes hari ini

The long-troubled Faraday Future (FF) dispute has reached an impasse. What is the truth? How will FF, which has attracted great attention since its birth, evolve? Jiemian News tries to restore this ups and downs and complex game.

Delegate authority based on trust

The cooperation between Evergrande and Jia Yueting can be traced back to June 25 this year, when Evergrande acquired 100% of the shares of Hong Kong Season Smart Company for HK$6.7467 billion, thereby acquiring 45% of the shares of Smart King.

According to the investment agreement, Season Smart will pay an investment of US$2 billion to FF within three years, of which US$800 million will be paid before the end of 2018, US$600 million will be paid in 2019, and US$600 million will be paid in 2020.

Through this huge investment, Evergrande became FF’s largest shareholder and agreed to retain the 10:1 special voting rights previously granted by Season Smart to Jia Yueting. In other words, Jia Yueting is still the actual controller of FF, that is, he controls the board of directors and firmly controls FF's operating decision-making power.

Although Xia Haijun, the president of Evergrande Group, is also the global chairman of FF, since he is fully responsible for the operation of Evergrande Group, he does not have much daily management of FF. Evergrande actually assigned only one cashier to FF, who is only responsible for the most basic cashier work. Moreover, the agreement has stipulated that even if the cashier does not sign, payment will be deemed to have been agreed after seven days, and FF's fund use rights are actually controlled by Jia Yueting.

It can be seen that Evergrande has given full trust and delegation of power to Jia Yueting and his team from the beginning of its investment. It is worth noting that at that time, Jia Yueting was already deeply involved in LeTV's crisis and his personal credit was almost bankrupt. Evergrande still chose to take a stake and delegate power. Xu Jiayin's determination to enter the new energy field is evident.

FF China’s three major dilemmas

At the beginning of the cooperation, both parties knew that as a capital-intensive industry, automobiles require smooth external financing channels in addition to capital investment from shareholders. Since Evergrande's credit record in the domestic capital market is significantly better than that of Jia Yueting, the person subject to execution for breach of trust, Evergrande assisted FF in carrying out financing work in China after the two parties cooperated.

It was also during this financing process that the information that Jia Yueting had concealed from Evergrande and which had a huge adverse impact on FF's financing in China began to surface one after another.

Since Jia Yueting violated the regulations on round-trip investment (SAFE Document No. 37) when he was a shareholder of LeTV, FF China’s foreign exchange account was frozen. This has resulted in the funds Evergrande invested in FF being unable to be settled in China to support the development of FF's business in China, and even the salaries of employees cannot be paid. To this day, it can only rely on Evergrande's unsecured borrowings to maintain operations.

The attitude from government departments and financial institutions may be a difficult problem for FF's financing work. Many banks have stated that they cannot accept that the actual controller of FF is Jia Yueting.

MakeJia Yueting, who has been listed as a person subject to execution for dishonesty many times, still has a large amount of debt in China. Only if Jia Yueting transfers his shares and no longer controls FF can he obtain financing support. Relevant government departments have also made it clear that they recommend that the shareholder (Evergrande) consider adjusting Jia Yueting's CEO position.

Jieme News learned that in a meeting between FF China and a bank, the bank made it clear that as long as Jia Yueting still holds FF shares, it will be impossible to raise funds. If financing is to be obtained, Jia Yueting's equity must be transferred out. FF cannot have his shares, let alone let him control FF.

Another letter from the government also showed that "Jia Yueting, the person subject to breach of trust, still serves as the CEO of FF, which has an extremely negative impact on FF's business and projects in China. Therefore, this will undermine the support of government agencies for the project, and it is recommended that shareholders adjust his CEO position." It is hoped that Evergrande can use its own brand, credibility and influence to solve the problems faced by FF in China and promote the development of FF-related businesses in the country.

After a period of hard work and attempts, Evergrande fully realized that if FF China wants to develop domestically, it must solve three major problems as soon as possible: First, FF China's domestic foreign exchange account has been frozen and cannot settle foreign exchange; second, it is basically impossible for FF China to obtain financing from financial institutions in China; third, because FF's actual controller Jia Yueting himself continues to be listed as a person subject to execution for dishonesty, and the continuous negative news caused by this, it is very difficult for FF to obtain relevant government policy support.

Two options for Evergrande

On July 13, local time in the United States, Xu Jiayin, Chairman of the Board of Directors of Evergrande Group, and his delegation visited the FF headquarters in Los Angeles and discussed and exchanged views with FF management on the company’s future development.

According to previous public reports, Xu Jiayin and his party conducted a detailed investigation of the core R&D departments of FF headquarters such as manufacturing, electrical laboratory, powertrain, battery electronic control, design studio, vehicle safety, Internet of Vehicles, and autonomous driving. Jia Yueting accompanied the entire process, and the atmosphere between the two parties was harmonious.

However, when Evergrande proposed to solve the development difficulties in China, Jia Yueting said that the US$800 million that Evergrande had paid in advance had been used up, and required Evergrande to pay another US$700 million in advance to allow FF91 to be mass-produced before March 31, 2019.

According to Jiemian News, Evergrande faced two choices at the time. The first is that Jia Yueting has a high probability of not being able to fulfill his mass production commitment. If he insists on implementing the original agreement, he can wait for the reversal of voting rights in the first quarter of next year to gain control.

The second is to trust and continue to support Jia Yueting and pay in advance to solve the problem in China as soon as possible. Without the huge Chinese market, even if FF91 is mass-produced in the United States as scheduled, it will be meaningless for the development of FF. Evergrande's plan to "introduce the world's top new energy technology into China" is even more out of the question.

After weighing, Evergrande chose the latter, agreeing to consider providing an additional US$700 million in advance, agreeing to cancel the milestone assessment for mass production of the FF81 model, and agreeing to lift the clause that "if Jia Yueting cannot return to the FF office in China to perform CEO duties within 36 months, the 10:1 voting rights will be reversed." But it also requires FF to solve the problem of frozen foreign exchange accounts and achieve domestic financing to completely solve FF China's predicament.

Based on this consensus, the two parties then launched another round of negotiations.

It is reported, during the negotiation process, Jia Yueting took the initiative to propose that Jia Yueting transfer his FF equity to a third party. He believes that this move is sufficient to solve the problems faced by China.

Subsequently, the two parties signed a supplementary agreement. The core content of the agreement is that the two parties agree that within 30 days of signing the agreement, Jia Yueting will transfer his FF shares to a third party and provide evidence that satisfies relevant government agencies and financial institutions.

However, in actual operation, Jia Yueting only handed over the shares to a 24-year-old young woman, who is still the actual controller of FF.

It is understood that Jia Yueting’s team successively submitted “proof” documents regarding Jia Yueting’s share transfer in the following month. However, after studying these “evidences”, relevant government agencies and financial institutions questioned Jia Yueting’s share transfer behavior.

One example is a government letter stating that the problems caused by Jia Yueting's appointment as FF CEO have put great pressure on relevant government departments to provide industrial policy support. It also stated that Jia Yueting needs to provide more supporting documents for his share transfer to assess whether he still actually controls FF.

In other words, Jia Yueting created the illusion of share transfer through proxy holding, which did not satisfy government agencies and financial institutions.

Until now, FF’s foreign exchange account has not been unlocked, the government’s industrial support policies have been difficult to implement, and loans from financial institutions have not been released. Therefore, the preconditions for Evergrande to pay US$700 million in advance have not been met.

Negotiations break down

As time passes, FF's life becomes more and more difficult, and the development of China and the United States has reached the edge of life and death.

In September this year, in order to break the dilemma, Evergrande once again proposed a new solution and proposed a funding alternative to Jia Yueting. Evergrande is willing to provide an investment of US$700 million in 2018 to support the operations of FF America. In addition, it is also willing to provide a five-year loan of US$500 million to FF China to solve the domestic financial dilemma, and the annual interest rate is 7.8%, which is lower than Evergrande’s own financing costs.

If executed smoothly, plus the US$800 million that has been paid in advance, it means that Evergrande will pay US$2 billion to FF in one year in 2018, which is equal to the investment amount originally planned to be paid in three years. Judging from the total amount, it also means that Evergrande will invest a total of US$2.5 billion in FF (including US$2 billion in shares and US$500 million in loans), further increasing support compared with the original plan.

Evergrande proposed that since it is a listed company and the amount of US$500 million is huge, in order to protect the interests of shareholders of the listed company, it requires the equity of FF Hong Kong and FF China as loan collateral. This is also the most basic business principle. It is worth mentioning that US$500 million is a five-year loan, and the electric vehicle industry can say that life or death can be determined in two years. If Evergrande really wants to "eat" FF as Jia Yueting said, there is no need to agree to such a long loan term. In the same way, if Evergrande really wants to "eat" FF, the loan interest rate provided to FF will not be set at a level far lower than its own financing cost.

In addition, Evergrande believes that FF intellectual property rights should flow freely within the FF Group, FF China has the right to use FF's technology, and Jia Yueting should lift the restrictions on sharing technology between FF China and FF America. However, Jia Yueting interpreted all the new plans proposed by Evergrande as a "Treaty of Overlord"rdquo;.

During this negotiation, Evergrande even agreed to postpone the milestone assessment of FF91 mass production from March 31, 2019 to June 30, 2019. This concession by Evergrande did not impress Jia Yueting, and the two parties ultimately did not sign an agreement. Jia Yueting not only refused to share technology between FF America and FF China, but even proposed that the investment of US$2 billion can only be used in the United States, and insisted that FF China must obtain his consent before it can raise more than 500 million yuan in financing. This means that Xu Jiayin's dream of introducing the world's most advanced new energy vehicle technology into China has been shattered, and Jia Yueting has touched Xu Jiayin's bottom line. After the negotiation broke down, Evergrande proposed to replace the CEO for the first time. Previously, Evergrande had a supportive attitude towards Jia Yueting.

Faced with Evergrande’s repeated concessions in providing funds, lifting assessments, etc., Jia Yueting hindered the normal development of FF for his own selfish interests, thus creating a lose-lose situation. Those domestic suppliers and creditors who were waiting for Jia Yueting to turn over and repay the money were once again trapped in an elusive wait.

Source: Interface News