Leshi Fails to Repay Debt on Time

JRJ: 乐视网:“15乐视01”未按期兑付本息 构成违约
 LeEco ( 300104 , attending shares ) evening announcement said 15 TV Plus 01 corresponds to August 3, 2018 payment of principal and interest, by the company, the capital chain tension influence, failed to timely payment of principal and interest debt. The voucher is a 3-year private debt issued by LeTV. The issuance scale is 1 billion. With the second year end, the coupon rate is raised and the investor's option to sell back. The current balance is 73 million yuan. The ticket price fell nearly 30 yuan a day before the delisting, the valuation of financial debt which has been the center of the bond market field implied rating - bonds adjusted debt rating from BBB to CCC. LeTV.com has broken the capital chain due to the expansion of the company. There are billions of debts to be repaid. The annual loss in 2017 was 13.88 billion, and the loss in the first half of 2018 was nearly 1.1 billion. At present, the market value of LeTV's stock has fallen below 10 billion yuan.
Leshi was worth more than 150 billion yuan at its peak in 2015. Chinese analysts thought it could hit 270 billion a year later.

Tech Node: LeTV might be delisted from the Shenzhen Stock Exchange
On July 13, Leshi (乐视网) released a financial forecast for the first half (H1) of 2018 reporting net profit losses for shareholders between RMB 1.10 and 1.11 billion. In the same period last year, the company reported net losses of RMB 637 million.

The company released a statement the same day saying that if its net assets will be negative for the year of 2018, it will be at risk of being suspended from its listing. According to Shenzhen Stock Exchange regulations, if financial reports show that the net assets are negative at the end of the year, the exchange may decide to suspend the listing of the stock.

The news comes just days after the Shenzhen Stock Exchange questioned Leshi regarding the new blockchain business of its smart TV subsidiary Lerong Zhixin. The company found itself under the suspicion of using blockchain buzzwords to hype up its stock price.

Leshi’s long string of financial woes began in 2016 but the real troubles emerged in June 2017 when Chinese courts started freezing the assets of Jia Yueting, the founder and former CEO of what was then called LeEco. In September 2017, the company rebranded in an attempt to distance itself from its founder. Three months later, Jia was added to a government blacklist for credit defaulters. He was called back to China in February 2018 to sort out the company’s mounting debt. The newest on Jia is that he was banned from air and rail travel in China.

In April, Leshi received a much-needed capital infusion when Tencent, Suning, and JD.com invested RMB 3 billion ($478 million) in Leshi Zhixin. The affiliate owns LeTV Super TV, which is considered the highest quality asset within the group.

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