After the results of the emergency relief arbitration between Faraday's future and Evergrande's dispute over the cooperation agreement, Jia Yueting Pavilion temporarily received up to $500 million in financing rights.
October 31, FF insiders told the Securities daily reporters, FF financing is expected to be two months after the results.
In addition, the securities daily reporters received an internal FF mail yesterday, the FF will be leave without pay this year after May 1 to enter the majority of staff, leaving only about 500 employees core team members.
Jia Yueting Pavilion seeks a new round of financing On October 25, the Hkiac ruled on an emergency relief arbitration for the FF application, and both the FF and Evergrande said they were ' not lost '. The FF statement stated that the arbitrator's decision could no longer prevent FF from obtaining funds from other sources of financing.
And Evergrande Health issued a notice that the arbitrator dismissed the Smart King (FF entity) to completely deprive Shiying (Evergrande Health wholly-owned subsidiaries) of the financing consent right to the application, and earlier dismissed Smart King suddenly proposed contact season Smart Asset Mortgage new application.
However, according to the Evergrande Health Bulletin, it is clear that the arbitrator agrees that the FF is subject to strict conditions of financing and that the amount of external financing before the final arbitration shall not exceed $500 million and that Evergrande enjoys the preferential right to buy new shares. "The company is currently working through multi-channel, multi-dimensional financing to resolve the current cash flow difficulties, very confident in 2 months or so to restore the company's normal operation and restore employee wages."
"The FF insiders said. The break between FF and Evergrande is related to financing. According to Evergrande Health prior to the announcement, FF in six months after spending a constant large 800 million U.S. dollars, asked Evergrande to pay $700 million in advance. Evergrande Health said that the two sides signed a supplementary agreement, but FF did not meet the contract payment conditions, the demand for Evergrande payment. The FF, however, issued a statement stating that Evergrande failed to honour its commitment to pay any additional funds to FF and instead attempted to gain control and ownership of all IP rights in FF China and FF, and also prevented FF from accepting any direct financing from other sources.
Afterwards, the relationship between the two sides collapsed. In response to the ensuing arbitration, the two sides again disagreed over whether the arbitral tribunal dismissed the application for a total denial of consent to Evergrande's financing.
According to the Evergrande Health Bulletin's claim that the arbitrator dismissed Smart King's right to consent to full financing, the FF statement stated that it was completely inconsistent with the facts and said that, in disregard of the legal facts of Evergrande's health and misleading the capital market announcement, FF reserves the right to take further legal action. Evergrande to the securities Daily Reporter said, Evergrande Health as a listed company, the announcement of the content of the Conference of legal responsibility. Currently Evergrande is working with a team of lawyers to consider the proceedings against FF and Jia Yueting Pavilion. For the difference after the emergency arbitration result comes out, wait for the final arbitration result.
At present Evergrande and FF did not terminate cooperation, how to contract how to come. Recently, it has been reported that Evergrande Group is contacting Foton Motor, which aims to acquire 67% stake in the company.
Yesterday, Foton Motor issued a clarification announcement, said so far, Evergrande has not been in touch with the company on the matter of the transfer of Bao Wo.
FF or lay off half 500 man-made cars
With Evergrande break behind, FF internal also crisis unceasingly. In its previous statement, FF blamed its financial crisis on a Evergrande default and said it had adopted emergency management measures and contingency financial planning, and had to use layoffs and total pay cuts to save itself, The company's founders and Global CEO Jia Yueting Pavilion, as well as an increasing number of executives and even ordinary employees, voluntarily receive a dollar annual salary and company retreat.
FF internal Mail showed that FF announced a 20% pay cut.
According to our reporter, FF is responsible for product research and Development of senior Vice President Nick Sampson (Nick Sampson) and responsible for technology and product development, senior Vice President Peter Savagian (Peter Savagian) has been leaving this week. The FF internal mail received by the securities Daily also showed that most of the employees who joined FF after May 1 this year will be leave without pay in November and December, leaving about 500 core team members, mainly in the engineering development, manufacturing and supply chain teams that have completed FF 91 mass production and delivery.
According to previous reports, the FF employs a maximum of more than 1300 people, which means that the FF or more than half of the layoffs. In response, FF China yesterday issued a statement to the securities Daily Reporter, said that in the face of current difficulties, are actively promoting various solutions to achieve in the shortest possible time to meet the goal. During this interim period, most of the employees who joined FF after May 1 this year will be leave without pay in November and December, and will remain in the company to advance the FF 91 volume delivery work for employees who joined before May 1 this year, but wages need to be temporarily lowered.
All employees will continue to enjoy the benefits of health insurance. FF also said that the interim measures are expected to continue until the end of December, ' but it will depend on the progress of the financing we are actively promoting. While striving to retain employee and supplier partnerships, we are currently negotiating further with a wide range of global investors and will disclose information in a timely manner.