On February 27, Faraday Future (FF) Founder and former CEO Jia Yueting filed a “Plan Term Sheet” agreed to between himself and the Official Committee of Unsecured Creditors in his chapter 11 case with the Bankruptcy Court for the Central District of California. The Plan Term Sheet determines the terms of the reorganization plan with the support of the Committee.
Jia also filed an “Amended Disclosure Statement” with the Bankruptcy Court on March 2, implying that he had already finished all the paperwork regarding his Chapter 11 case. The reorganization plan will be sent to creditors for consideration and voting, before the Bankruptcy Court for confirmation.
The long-lasting Chapter 11 process has agitated Jia Yueting’s creditors. Jia was even called “dishonest” in the Delaware UST’s motion to appoint a chapter 11 trustee, based on assertions from hostile creditors. The motion has since been withdrawn. To permit creditors to question the debtor, a public hearing was held by the Bankruptcy Court in Los Angeles last Friday. Jia’s Chapter 11 case received the full support of the creditors’ committee.
According to a member of Jia’s debt project team, he is confident to work with the current commety to streamline the Chapter 11 process and overcome the obstacles to FF’s business development in China and ongoing global equity financing.
“In my opinion, the rising market value of Tesla has awakened the global capital market’s enthusiasm for the new energy vehicle industry again. FF as an investment is most likely to compete with Tesla in terms of products and technology. FF is also getting more competitive with the recent addition of Dr. Carsten Breitfeld, previous global VP at BMW, Benedikt Hartmann, former VP of global supply chain at BMW Brilliance, and Bob Kruse, former CTO at Qoros,’ said a source close to Jia Yueting. “I heard that several local governments are now competing to collaborate with FF China.”