Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

LeEco's Coolpad says lawsuit filed against unit over loan due next month

Published 07/26/2017, 11:57 PM
Updated 07/26/2017, 11:57 PM
© Reuters.  LeEco's Coolpad says lawsuit filed against unit over loan due next month

© Reuters. LeEco's Coolpad says lawsuit filed against unit over loan due next month

HONG KONG (Reuters) - Chinese smartphone maker Coolpad Group, part of the cash-strapped LeEco technology conglomerate, said on Thursday a bank has sued a subsidiary, demanding early repayment of an 80 million yuan ($11.9 million) loan due Aug. 15.

LeEco, a smart cars to online content conglomerate that is grappling with the fallout of expanding too fast, has been under growing pressure from its creditors and business partners. This month a court in Shanghai ordered a freeze on some of its assets over late payments to a bank.

Coolpad said in a statement that the unit, Yulong Computer Communication Technology, had been sued by a Ping An Bank branch which argues that it can call in the loan as the financial situation of the guarantor, another Coolpad unit, had deteriorated.

Coolpad added that it has consulted lawyers regarding the case and was gathering evidence to defend itself in court.

Coolpad has repeatedly delayed reporting its earnings, which were due to be reported in March, because of audit issues since March. Its shares have been suspended since March 30.

LeEco founder Jia Yueting this month resigned as chairman of the group's main listed unit, Leshi Internet Information & Technology Corp Beijing, after making a public plea for patience.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.