New | Haosheng sues LeMobile for unpaid bills as LeEco’s cash woes persist
The suit is the latest sign that LeEco’s survival hinges on moving from one creditor’s claim to another
LeEco, the video streaming company that’s aspiring to build the world’s fastest electric sports car, is being sued by a Chinese vendor for unpaid bills, in the latest sign that its cash woes are persisting even as it claims to be raising funds from investors.
LeMobile signed a November 16 contract to buy speakers from Haosheng, agreeing to pay the vendor 11.02 million yuan and US$5.93 million in nine instalments, plus 6 per cent annualised interest rate. The first instalment was missed on December 11 last year, Haosheng said.
Haosheng is among several creditors queuing up at LeEco’s door.
Since its establishment in 2004, LeEco had expanded from its core business of video streaming into music, making smartphones, movie production, virtual reality, and even the manufacturing of electric cars. Last month, the company broke ground on a 12 billion yuan assembly in Zhenjiang province with the capacity of producing up to 40,000 electric cars a year.