The first drive outstanding Hengda cashier, experts refer to FF alleged violation of company law
This is the two sides to jointly promote the new car production, now sitting in the opposite Hongkong, the Cayman court talks, FF production may really have to its founders "homecoming", in the foreseeable future?
11 August 8 morning, FF registered in the country by WeChat, published articles, Hengda yesterday responded "arbitration comprehensive health counterclaim" said, Hengda FF on financial status and financial planning from first to last knows, can always understand FF financial status through the relevant channels, including FF financial department from 11 6 to 2018 years including two, the FF board of directors accredited Hengda will report the financial situation, PWC LLP (PwC) continue to provide in the audit process of normal financial report.
Faraday said that in the future, at the beginning of October, after the company filed for arbitration of Hengda health, internal financial management based on the process, the company officially stopped on FF financial information access to the cashier and Hengda related financial examiners and the related work, this is a unilateral breach of contract caused by hengda.
A day earlier, Hengda Health said in the announcement, due to the joint venture company (the Hengda and the original FF joint venture Smart King) refused to provide financial information and related documents, Shi Ying (constant subsidiary of the joint venture company) appointed by the board of directors to sue the Grand Court of the Cayman Islands, asked the court ordered the company to all financial the data and related documents.
Hengda also accused Jia Yueting and the company appointed by the cashier when forcibly evicted Ying, forced to stop when the financial personnel of the financial review Ying Ying, the financial situation of the joint venture company is unable to cause. Hengda said, according to the shareholders' agreement, when Ying has the right to financial review and to the joint venture company appointed by the cashier, the cashier if agreed at the same time seven days to sign is the agreed payment.
The reporter interviewed on the matter, the law said that large shareholders and management disputes into arbitration stage, which contains the spirit of the law is both keep view, enter a third party ruling by the authority of the stage. During the parties shall not damage the interests of the other side, once the behavior is illegal. Now the two sides regarding the effectiveness of the arbitration agreement is still in the trial stage, Hengda is still the major shareholder of FF, even in the course of arbitration, the interests of shareholders Hengda still protected by law, have the right to appoint a financial review and FF cashier emphasized that these people ".
"This is clearly a violation of a basic legal knowledge." An arbitration law experts said that the failure to make the agreement Jia Yueting party so filed for arbitration, the arbitration award but failed when the agreement between the two parties should continue to perform normal, Hengda as investors shareholders have the right to enjoy the financial review and FF to appoint a right, this is the basic knowledge of legal framework.
"According to the international general contract system and legal system, financial directors have the right to know, not only is the monthly financial report, also can provide more detailed financial statements, and the detailed flow of funds."" The legal experts said. Reporters learned that FF had called to Hengda to provide financial statements are general data in general, is spending, and on the basis of demand for funds, no specific details, totally inconsistent with the financial reporting standard.
Another insider also said that FF has yet to provide Hengda in 2017 and the first half of 2018 audit report. This fact has caused investors the right to know the financial deprivation "these people think.
FF no money
In the FF and Hengda "progress to financial disputes and financing ankylose", including product strategy and senior vice president of Nick Sampson, Peter Savagian, senior vice president of global research and development, global manufacturing operations senior vice president of Dag Rechhorn, the future Faraday finally several core executives announced his resignation.
Nick Sampson left in the letter said, Faraday in the future financial and human assets actually bankrupt. From November onwards, Faraday entered the future temporary transition period, after May 1st to join Faraday's future will be in November and December for most employees leave without pay, leaving 500 people preparing for mass production, but the wages need to temporarily cut.
In November 8th FF released a statement also confirmed this view. FF said that although health defaults caused Faraday Hengda future temporary cash flow difficulties, but the core team of R & D, production, supply chain and other departments are still in production and testing work to promote FF 91.
The money will have to inject, however, so far, no FF or reoccurrence of the embarrassing situation of capital.
It is understood that 2 months of "burn" Hengda injected the first $800 million after Jia Yueting in the FF financial control firmly, eventually angered large shareholders Hengda health.
In October 3rd, FF to delay payment in advance payment of $500 million in 2018 on the grounds, in the Hongkong International Arbitration Center for arbitration, for depriving the shareholders enjoy the relevant financing as Ying's consent, release all agreements, deprivation of rights under the relevant agreement in Shi Ying.
Who is the capital
That has been in court, in the final ownership of the Hengda is difficult in the short term to invest in FF, FF need to obtain new funds from outside.
In October 25th, FF high-profile claims, the company submitted at the Hongkong International Arbitration Center for emergency relief for win Hengda health, Hengda arbitration can't stop Faraday coming from other financing channels to obtain funds.
According to the U.S. FF internal staff revealed that Jia Yueting had in the internal mail revealed that FF has been approached with the new financing, financing is the founder of a fund from the Middle East, and China from Sequoia capital.
Whether the facts described such as FF? Hongkong International Arbitration Center in an interview said, "emergency temporary relief application" is a temporary measure, not the case involving the dispute to make the final decision, in the progress of emergency procedures in the course of arbitration, the formal arbitration procedure can be carried out simultaneously, and the arbitration tribunal shall make a final ruling on the dispute.
According to Hengda Health revealed that the future of arbitration allows Faraday to have strict conditions of financing, the new financing valuation may not be lower than the investment valuation Hengda, Hengda shares enjoy preferential purchase right; in the final arbitration before the foreign financing amount shall not exceed $500 million.
In other words, either equity or assets, Faraday the future is still subject to large shareholders Hengda health.
Other media also reported, "FF is currently financing progress is not optimistic. Jia Yueting always tell investors that FF91 take as long as a little bit of money can achieve mass production, but as long as the car industry have a certain understanding of investors didn't trust him at all."
Who declined to Name auto industry experts said, in the restrictive conditions, Jia Yueting will introduce new investors extremely difficult: first, before Hengda investment of $800 million less than half burnt, new investors to invest $500 million to carry? Two, need not less than Hengda investment valuation of $4 billion 400 million, this valuation is unattractive, why not have mass sales and investment investors listed Wei to the car?
But in the new investors have not settled the case, Faraday's future in the first quarter of 2019 to achieve FF91 production delivery plans are still in crisis. The ten included in the list of dishonest people, domestic assets have all been seized, "leaving" the United States FF founder Jia Yueting is becoming the biggest obstacle may "FF production".