Hengda Faraday said he had won the battle. Who was playing a fat face?


Hengda Faraday said he had won the battle. Who was playing a fat face?

Faraday's future is in jeopardy, starting the crucial moment of massive pay cuts, Faraday's future application for emergency arbitration results, Faraday eventually escaped bankruptcy fate.

According to the announcement on Evergrande's health, the Hong Kong International Arbitration Center rejected Jia Yueting's request for the complete deprivation of Evergrande's financing consent and Jia Yueting's provisional request for further deprivation of Evergrande's asset mortgage. In view of the fact that Faraday is on the verge of bankruptcy in the current financial situation, in order to protect the common interests of all shareholders such as Evergrande, the arbitration allows Faraday to conduct "conditional financing" in the future, in which the valuation of new shares financing must not be lower than Evergrande's post-investment valuation, Evergrande enjoys the preemptive right of new shares; and before final arbitration. The amount of external financing should not exceed $500 million.

However, for Jia Yueting's part, this arbitration result has been interpreted in a completely different version, without mentioning any restrictions on arbitration. "Faraday's future application for emergency relief for Evergrande's health, filed at the Hong Kong International Arbitration Center, will win in full, and the arbitrator has ruled that Evergrande can no longer prevent Faraday from obtaining funds from other sources of financing in the future," Faraday's future statement to First Financial Reporter said. Faraday also announced in the future that it will officially open global financing.

"The arbitration referred to Faraday's future external financing limit of only $500 million and the valuation requirement just to prevent the company from going bankrupt," a senior financial source told First Financial. In the future, Faraday also used this result to make a "reverse speculation", which is really a big face.

Earlier, people familiar with the matter told First Financial Reporter that it would be difficult for Faraday to obtain new financing in the future, mainly because Evergrande is still its largest shareholder. Now, although the outcome of the arbitration may rewrite the fate of Faraday's future, such stringent financing conditions will leave few willing suitors.

At the beginning of this month, a bulletin from Hengda made Jia Yueting a heartbreaker. Evergrande said that Jia Yueting and his Faraday spent $800 million of Evergrande's capital over the next six months, unilaterally tore up the agreement and submitted an arbitration to the HKSE after the new financing failed to materialize, demanding that Evergrande be kicked aside to seek new financing.

"Previously, Evergrande tried to gain control of Faraday's future and global intellectual property rights through unreasonable and unequal means, including the creation of the Faraday's future cash famine," Faraday's future statement said.

Earlier this week, in the absence of new capital injections, Faraday confirmed to First Financial correspondents that the company had begun a 20% pay cut for all employees and would start layoffs. And the founder of CEO Jia Yueting's salary is reduced to only 1 dollars.

In the statement, Faraday blamed Hengda for future layoffs and pay cuts: "Since Hengda's default caused the financial crisis, the company has taken emergency management measures and formulated emergency financial planning. Evergrande maliciously destroyed Faraday's future cash flow planning, refused to release the Faraday future related asset preservation in violation of the agreement, resulting in the company's contingency financing plan blocked, had to take the form of layoffs and pay cuts.

Although Faraday won Hengda's arbitration in the future, after the breakdown of the capital chain, large-scale salary adjustments will undoubtedly become a cold winter, the future of Faraday in front of another sad chop. Faraday's future is now at a critical stage in FF91 production, and Jia Yueting's priority is to find the next investor to meet his production plan.

Faraday said in a future statement that it is seeking to work with global investors with the same vision and values, while reiterating its ability to deliver FF 91 to global markets and subscribers in 2019 and to achieve the ultimate vision of creating a shared intelligent travel ecosystem.

The company also pointed out that the FF91 product development work has been completed, and on August 28 ahead of schedule to achieve the target of mass production vehicles, Hanford factory has completed mass production planning, only one step away from the final mass production delivery.

Faraday will not reveal in the future when wages will resume. But in an e-mail sent to employees last Sunday, it said: "The company is scrutinizing its finances so closely that it will reassess the decision with the goal of restoring pay once it gets new financing."

In addition to being unable to afford normal wages for employees, Faraday has at least a few hundred thousand dollars in future arrears with suppliers. A future Faraday supplier told First Financial Reporter earlier this month: "Faraday has recently delayed payment in the future and is said to have to wait four or five weeks before paying." But until now, the supplier has not yet received the payment. Based on the pricing of the company's products, First Financial Reporter estimates that the order ranges from tens of thousands of dollars to 100,000 dollars.

It is noteworthy that on October 16, Hengda Faraday will establish an automotive technology branch in Beijing with a registered capital of 50 million yuan, wholly owned by Hengda Faraday Future Smart Automobile (Guangdong) Co., Ltd. Its main business is technology promotion and sales of automobiles. The legal person is Hengda Faraday's future vice president Liu Hao.

The reason why Jia Yueting initiated arbitration is helpless. The promised mass production by the end of this year looks like a mirage. This time, even if there is a "white knight" like Sun Hongbin, it will be difficult to deal with the current complex situation. (reporter Zhang Xinchen contributed to this article).


Waonews is a news media from China, with hundreds of translations, rolling updates China News, hoping to get the likes of foreign netizens