FF exclusive response: Evergrande defaulted first | we only rushed out of the cashier

Against the eyes of enmity, the court is in court. Jia Yueting's investment in the electric car startup Faraday Future and the investor Hengda Health's tears continue. At the end of last year, it was Evergrande's timely capital injection to help FF get rid of bankruptcy.

First look at the latest round of war of words between the two sides. On November 7, Evergrande Health announced that its company has filed a comprehensive counterclaim against Jia Yueting and the joint venture company Smart King, demanding that Jia Yueting and the joint venture company fulfill the contract. 'Jia Yueting and The joint venture company forcibly ousted the cashier appointed by Evergrande and forcibly prevented Evergrande financial personnel from entering the market for financial review, which led to Evergrande's inability to understand the financial status of FF.

According to the shareholder agreement, Evergrande has the right to conduct financial review and dispatch a cashier to the FF. It also stipulates that if the cashier does not sign for seven days, it will be deemed to agree to the payment. In addition, Evergrande is still in the Cayman Islands registration of the FF offshore company. Filed a lawsuit.

However, FF responded to Sina Technology, saying that 'Hengda’s refusal to pay and FF to drive away their cashier is two different things. FF is because Evergrande defaulted to refuse payment, resulting in the invalidation of the agreement, so submit the arbitration in Hong Kong, and then let the cashier leave. There is a sequence. '

An FF executive previously disclosed to Sina Technology, 'In July this year, Evergrande and FF successfully reached a supplementary agreement, agreeing to pay 700 million US dollars in advance to help FF to mass-produce FF91 at the beginning of next year. However, Evergrande has always been Procrastination and refusal to pay, and obstructing FF to obtain new financing. This led to FF being forced to file an arbitration request for emergency financing and dismissing Evergrande's consent.

The executive also accused, 'Hengda is deliberately let FF into financial difficulties, hindering FF91 mass production, forcing Jia Yueting to give up super voting rights, and hand over the actual control of FF to Evergrande. According to the previous agreement, if FF next year In the first quarter, mass production cannot be completed smoothly, and Jia Yueting’s super voting rights will be invalid.

As funds have been exhausted, FF has again defaulted on supplier payments, and the company’s operations have also stagnated, leaving employees with unpaid leave (new employees who joined the company after May this year) or substantial salary cuts (old employees who have been employed before). This situation has affected FF, a large number of employees have left, and currently there are only more than 500 employees (more than 1,400 in the heyday).

A brief review of the previous enthusiasm and grievances between the two sides. At the end of last year, Hong Kong Shiying Company and FF reached a $2 billion investment agreement. But the real gold lord behind it really only surfaced in June this year. Evergrande Group's Hong Kong listing Evergrande Health announced that it has invested HK$6.7 billion to acquire 100% equity of Hong Kong Shiying Company and indirectly obtained a 45% stake in FF's holding company SmartKing, becoming the largest shareholder of FF, and Jia Yueting's shareholding ratio has decreased to 33%. According to the agreement, Jia Yueting has a super-voting right of 1:10, and firmly controls the actual control of FF.

The two sides thus opened the honeymoon period. With the financial support of Evergrande, FF's Hanford work is in full swing for mass production preparation. At the end of August this year, it announced the creation of the first FF 91 pre-production vehicle, which is expected to be in the first quarter of next year. Officially listed for delivery. FF's China business is also rapidly advancing. On August 7, Evergrande Faraday will be registered in the future; on August 14, Evergrande will unveil the ceremony for 'Hengda Faraday Future Smart Car (China) Group' Peng Jianjun, vice president of Evergrande High-Tech Group, vice chairman of Evergrande Health and future chairman of Evergrande Faraday, announced the grand plan of Evergrande FF's annual production capacity of 5 million units in ten years. Evergrande boss Xu Jiayin also 7 this year. I went to the FF headquarters in Los Angeles to inspect the car-making process and talked with Jia Yueting. The photo was full of smiles.

However, Evergrande Health's announcement in October this year tore up the seemingly intimate veil of the two companies. The announcement stated that Jia Yueting had already filed an arbitration in Hong Kong, requesting that the company's consent to FF financing be rested by Evergrande Health. And canceled the previous investment agreement. Evergrande Health said that after Evergrande had paid the first phase of 800 million U.S. dollars, Jia Yueting asked Evergrande to pay 700 million U.S. dollars in advance this year in July this year. The two sides signed a supplementary agreement. , but FF did not meet the payment terms required by the supplemental agreement (so Evergrande did not continue to pay).

Last week, the Hong Kong International Arbitration Center gave an emergency arbitration result, which further triggered the war of words between Evergrande and FF. Both sides unilaterally announced that they won the emergency arbitration, and even threatened each other with a new round of litigation. Evergrande said that the arbitration center Dismissed Jia Yueting’s application to completely deprive Evergrande of financing consent and lift the mortgage of Evergrande Assets, only to allow the FF that is about to go bankrupt to conduct strict financing; and FF announced that the arbitration center rejected Evergrande’s failure to fulfill its obligations by FF. The claim of paying $500 million supported the FF’s application for a $500 million financing right, and Evergrande was sentenced to pay the arbitration fee as the losing party.