The arbitration is pending to drive the Evergrande cashier. Experts refer to FF suspected of violating the company law.
This is the two sides who are working together to promote the mass production of new cars, but now they are sitting opposite the negotiating table of Hongkong and the Cayman court. FF mass production may be as long as the "return time" of its founder.
In the early morning of November 8th, FF issued an article through WeChat registered in the mainland to respond to the "comprehensive counterclaim" of Hengda Health yesterday. It said that Hengda knew the financial status and capital planning of FF from beginning to end, and always understood the financial status of FF through related channels, including the FF financial department reported the financial situation to the FF board, including the two Hengda directors, on November 2018 6, and the normal financial reports provided by PWC accounting firm during the audit process.
Faraday said in the future that in early October, after the company filed an arbitration on Hengda health, based on the internal financial management process, the company formally stopped the teller and Hengda related financial examiners' access to FF financial information and related work, which was caused by unilateral breach of Hengda.
On the previous day, Hengda Health said in the announcement that the director of the joint venture company appointed by Shi Ying (Hengda subsidiary) filed a lawsuit against the Grand Court of the Cayman Islands, because the joint venture company (Smart King, which is a joint venture company established by the original FF and a joint venture company) refused to provide financial information and related documents, and asked the court to order the joint venture company to provide all the financial information and relevant documents.
Hengda also accused Jia Yueting and the joint venture of forcing the teller appointed teller to forcibly prevent the financial officers from entering the field for financial review, resulting in a failure to know the financial situation of the joint venture company. According to Hengda, in accordance with the shareholders' agreement, Shi Ying has the right to conduct financial review and appoint a teller to the joint venture company, and also agrees that if the cashier does not sign for seven days, he agrees to agree to pay.
The reporter interviewed the legal personage on this matter, said that the dispute between the major shareholder and the management entered the arbitration stage, and the legal spirit contained in it was that the two sides reserved their views and entered a stage ruled by the authoritative third party. All parties shall not harm the interests of each other during the period. "The arbitration of the two sides on the validity of the agreement is still in the trial stage. Hengda is still a major shareholder of FF. Even during the arbitration period, the interests of shareholders of Hengda are still protected by law, the right to conduct financial review and to send members to the FF Committee," the above stressed.
"This obviously violates a basic legal common sense." An arbitration legal expert said that Jia Yue TING FANG wanted to bring the arbitration agreement to the effect that the agreement was invalid. However, when the arbitration award failed, the agreement between the two sides should continue to perform normally. Evergrande, as an investor shareholder, has the right to continue to enjoy financial review and the right to send FF members to the FF Committee. This is the basic knowledge of the legal framework.
"According to the international common contract system and legal system, directors' financial right to know is not only a monthly financial report, but also requires the provision of more detailed financial statements, capital flow and details." The legal expert continued. The reporter understands that the financial statements provided by FF before the so-called Hengda are general general data, mainly the major items of expenditure, as well as the basis of capital demand, and there is no specific usage details, which is totally out of line with financial reporting standards.
In addition, people familiar with the matter also said that FF has not yet provided Hengda with audit reports in 2017 and the first half of 2018. "This fact has caused investors to be deprived of their right to know the financial affairs".
FF no money.
In the FF and Hengda "for financial disputes and financing progress glued", including the product and Strategy Senior Vice President Nick Sampson, global research and development vice president Peter Savagian, global manufacturing vice president Dag Rechhorn, including the last several core executives Faraday announced the resignation.
Nick Sampson said in his resignation letter that Faraday will actually be bankrupt in terms of Finance and human assets in the future. From November onwards, Faraday will enter a temporary transition period in the future. After May 1st, most of the employees who will join Faraday in May 1st will stay on duty in November and December, leaving 500 people preparing for mass production, but wages need to be temporarily reduced.
The statement was also confirmed by FF in November 8th. FF said that although Hengda's health default led to Faraday's temporary cash flow difficulties in the future, the core team of production, R & D, supply chain and other departments is still promoting FF 91's mass production and test verification.
Without money, capital injection will be needed. However, for the time being, FF will sink into an awkward situation without capital injection.
It is understood that after 2 months, "burning" Hengda injection of the first 800 million U.S. dollars, Jia Yueting firmly control the FF finance, finally angered the major shareholder Hengda health.
In October 3rd, FF submitted an arbitration at the Hongkong International Arbitration Center on the ground of "$500 million in advance of the payment in advance". The request for deprivation was made as the right of consent of the shareholders to get the relevant financing. All the agreements were rescission and the rights of Shi Ying under the relevant agreement were deprived of the agreement. "The right of the company is to be deprived of the relevant rights under the agreement," the FF said.
Who will inject capital into it?
That is to say, before the final ownership is determined, it is very difficult for Hengda to inject capital into FF in the short term. FF urgently needs to obtain new funds from the outside world.
In October 25th, the FF high profile claimed that the application of the company's emergency relief application for Hengda health at the Hongkong International Arbitration Center was successful. The arbitrator ruled that Hengda could no longer stop Faraday from obtaining funds from other financing channels in the future.
According to FF, US internal staff revealed that Jia Yueting had previously disclosed in the internal mail that FF had approached the new financing side, a fund from the Middle East and Sequoia Capital from China.
Is the fact like what FF describes? In an interview with the media, the Hongkong International Arbitration Center said, "the application for emergency temporary relief" is a temporary measure and does not make final decision on the dispute. In the course of the development of the emergency arbitration procedure, the formal arbitration procedure can be carried out at the same time, and the arbitration tribunal will make a final ruling on the dispute.
According to Hengda health, arbitration allowed Faraday to carry out financing with strict conditions in the future. The valuation of new stock financing should not be lower than Hengda investment post valuation, Hengda enjoys the preemptive right of new shares, and the amount of external financing should not exceed $500 million before final arbitration.
In other words, whether equity financing or asset financing, Faraday will still be subject to big shareholder Hengda health in the future.
Other media have also reported that "FF's current financing progress is not optimistic. Jia Yueting told investors every time that FF91 could achieve mass production with a little more money, but investors who had some knowledge of the car manufacturing industry did not trust him at all.
An anonymous auto industry expert admitted that under restrictive conditions, Jia Yueting had to introduce new investors extremely difficult: first, before the investment of Hengda invested $800 million less than half a year ago, how long could the new investor invest $500 million? Two, it should be no less than $4 billion 400 million after Hengda's investment. The valuation is not attractive. Why do not investors invest in the car that has realized mass production and sales?
But in the wake of the new investor's delay, Faraday's plan to achieve FF91 mass production in the first quarter of 2019 is still in crisis. The ten time, the list of those who broke the trust list, and all the domestic assets were sealed up, had already "left" the FF founder of the United States, Jia Yue Ting, perhaps the biggest obstacle to FF's mass production.