Monday, October 14, 2019

Founder of Faraday Future Files For Bankruptcy

The founder of Los Angeles-based electric car company Faraday Future, Yueting Jia, has filed for Chapter 11 bankruptcy--in a move which will also move Yueting Jia's equity ownership in Faraday Future into a trust for his creditors. According to Faraday Future, the move "will not affect" any of the company's normal business operations. Farady said the move will provide Yueting Jia with personal debts, and also help Faraday Future with its equity finance efforts and to "prepare for an IPO". Faraday Future has had a troubled history with financing and has been seeing its own struggles to stay afloat after a dispute with one if its big investors a few years ago. Faraday Future said that this new filing by its founder "will not affect the ownership of employee stock options or shares in FF acquired upon exercise of employee stock options."