Just after the announcement of Evergrande Health, Faraday Future (hereinafter referred to as FF) and FF founder and CEO Jia Yueting filed a comprehensive counterclaim. On November 8, FF immediately issued an announcement to respond, stopping the cashier and related work of the relevant financial reviewers of Evergrande, which was caused by unilateral breach of contract by Evergrande. "FF will retain the right to take further legal action in respect of arbitration and legal proceedings brought by Evergrande."
At this point, the negotiating table of Evergrande and FF was officially moved to the courts of Hong Kong and Cayman.
FF said that Evergrande knows everything about finances.
Just yesterday, Evergrande Health said that Jia Yueting and the joint venture company forcibly escorted the cashiers appointed by Yingying and forcibly prevented Shiying’s financial personnel from entering the market for financial review, which caused Shiying to be unable to know the financial status of the joint venture company.
In fact, the focus of the dispute between the two parties is whether the financial situation is known. Evergrande Health believes that Jia Yueting and the joint venture company “forced to sneak away the cashiers appointed by Yingying and forcibly prevented Shiying’s financial personnel from entering the market for financial review, which caused Shiying to be unable to know the financial status of the joint venture company”.
It is reported that FF has not yet provided Evergrande with audit statements for 2017 and the first half of 2018. Moreover, since the financial statements provided by FF to Evergrande are general general data - the basis for expenditures and the basis for capital requirements, there is no specific use details, which has caused Evergrande to be aware of the financial status of the joint venture company.
In this regard, FF responded: Evergrande has always been familiar with the financial status and capital planning of FF, which is completely different from the statement that Evergrande Health mentioned in the announcement that “Hengda cannot know the financial status of FF”.
FF emphasizes that since the beginning of 2018, FF has repeatedly provided investors with complete financial reports and capital planning, including regular monthly financial and operational reports, as well as more detailed additional financial information, and there is no Evergrande health. The “FF refuses to provide financial information and related documents” mentioned in the announcement.
Some people close to the FF company disclosed to the "Securities Daily" reporter that in FF China, all employees know that the company's finances are controlled by a female person in charge of Evergrande. "Without her permission, I can't adjust it." The above-mentioned person said that, "At one meeting, she publicly stated that she would not delay the reimbursement of employees in the future, and she would applaud for a while."
In this regard, FF employees also told reporters that when the annual budget was reported to FF Global at the beginning of this year, there were many feedbacks from the US, and the changes were “in accordance with the requirements of Evergrande Finance. modify".
At the same time, the reporter also conducted cross-checks with Evergrande. The answer was that it was difficult to respond because of the involvement of confidential information. Everything is based on announcements.
"Cash famine" toilet paper stopped for two weeks
In fact, as early as October 25, Jia Yueting and Evergrande had their first confrontation. After the results of the first arbitration against the base, the two sides gave a completely different interpretation.
At that time, Evergrande Health believed that arbitration was comprehensive. The arbitrator not only dismissed Smart King's application for deprivation of the financing consent, but also rejected Smart King's new application to release the ownership of the Season Smart asset, allowing only $500 million in financing before the final arbitration; on the other hand, FF It announced that the emergency arbitration was fully won and officially opened up global financing. According to FF, the arbitrator ruled that Evergrande could no longer prevent FF from obtaining funds from other financing sources.
Some industry lawyers told reporters that the application for emergency interim relief is an interim measure. In the process of the emergency arbitration process, the formal arbitration procedure can also be carried out simultaneously. This shows that the outcome of the emergency arbitration will not make a final decision on the case, and the battle between FF and Evergrande is not in the air.
The latest news shows that on November 2nd, FF announced the signing of US investment bank Stifel as a financial consultant to help him customize the debt financing plan. But in fact, whether it is equity financing or asset financing, FF is still subject to the major shareholder Evergrande, and the FF “cash famine” caused by the book court is still continuing. Recently, employees of Evergrande Faraday Beijing Company poured into the "Securities Daily" reporter: "The company's toilet paper has been suspended for two weeks, and I don't know when it will be restored."
It is worth mentioning that the reporter noted that at the end of this announcement, FF also reported the latest mass production progress of FF 91. The company said that despite the temporary cash flow difficulties, the core teams in the production, R&D, supply chain and other sectors are still promoting the mass production and test verification of the FF 91, while the US investment bank Stifel is also actively seeking cooperation with FF and promoting external financing. Has made breakthrough progress.
(Article source: Securities Daily)