Leeco Founder’s As­sets Frozen

ChinAfrica - - News Roundup -

Cash-strapped the founder of Chi­nese In­ter­net gi­ant Leeco, who stepped down from the po­si­tion of com­pany chair­man of the board of di­rec­tors in June, is fac­ing an­other blow. On July 3, 1.24 bil­lion yuan ($183 mil­lion) in as­sets be­long­ing to Jia and three of the com­pany’s af­fil­i­ated com­pa­nies were frozen by the Shang­hai High Peo­ple’s Court.

The court made the rul­ing af­ter a China Mer­chants Bank branch ap­plied for a prop­erty preser­va­tion order in June to block their as­sets as Leeco failed to pay the in­ter­est due on their bank loans to fund its smart­phone busi­ness.

Leeco has been wrestling with a fi­nan­cial squeeze since last Novem­ber, with Jia ad­mit­ting pub­licly that the ex­pan­sion into smart­phone, au­to­mo­bile, cloud ser­vices and In­ter­net fi­nance was a step too far.

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