FF applies for enforcement of emergency relief awards in the United States

FF applies for enforcement of emergency relief awards in the United States

FF has been negotiating with potential investors in the US for enforcement of emergency relief rulings.

Surging news reporter Chen Yuxi

On November 9, Peng Mei's journalist learned from Faraday Future (FF) that FF filed a petition with the Central District Court of California to confirm and enforce the emergency relief award made by the Hong Kong Arbitration Tribunal.

Following FF's announcement that the company's emergency relief application for Evergrande's health filed at the Hong Kong International Arbitration Center was successful, the arbitrator ruled that Evergrande could no longer prevent Faraday from obtaining funds from other sources of financing in the future. Meanwhile, the FF said that the arbitration tribunal demanded that Evergrande pay more than HK$5.8 million in legal fees incurred in the arbitration.

Hengda said that the arbitration allowed Faraday to conduct rigorous financing in the future. Among them, the valuation of new stock financing should not be lower than the post-investment valuation of Hengda, Hengda enjoyed the preferential right to purchase new shares, and the amount of external financing should not exceed US$500 million before the final arbitration.

The Hong Kong International Arbitration Centre told Peng Mei that the application for emergency provisional relief was an interim measure and that no final decision was made on the dispute. In the course of the progress of the emergency arbitration procedure, the formal arbitration procedure could be carried out simultaneously and the arbitral tribunal could make a final decision on the dispute.

As for the arbitration of "kicking Hengda out", the Hong Kong Arbitration Tribunal has not yet given the result and is still in the process of processing. But with $500 million in financing rights obtained through emergency relief applications, the future of Faraday, which has run out of funds and has to resort to layoffs and suspension of pay and stay in office, is a glimmer of life.

"This ruling paves the way for FF to raise new funds, and we have had active discussions with new potential investors." "Our goal is to raise enough funds to deliver the first batch of FF 91 to subscribers in 2019," said Michael Agosta, FF Vice President of Global Finance.

FF also said in the complaint that Hengda Health, as a listed company, issued highly misleading information to investors. "After the emergency arbitration award was issued on October 25, Hengda Health issued a false and misleading announcement on the Hong Kong Stock Exchange that FF lost the lawsuit in the arbitration and disseminated such information as FF to the public. The arbitration application was rejected, "the arbitration tribunal supported the error information of Hengda's financing consent rights".

Peng Mei News from the complaint filed by FF, the applicant is Smart King, the parent company of FF in Cayman, and the respondent is Shi Ying, a subsidiary of Evergrande. FF believes that the suspension of investment payments by Evergrande seems to be a deliberate attempt to let FF run out of cash and bankrupt FF, so as to avoid fulfilling its subsequent payment obligations and obtain the most from FF. Value assets.

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