The businesses of LeEco's subsidies including LETV, Leshi Zhixin and Le Vision Pictures are sound and capital is not an issue, Sun Hongbin, Sunac's chairman and also a board member of LeEco, said at an extraordinary general meeting in Beijing on Monday.
An hour before the meeting, more than 30 creditors gathered at the registration area of the meeting. They said that they have been seeking repayment after gathering around the country eight times.
The group is asking LeEco to repay them a total of 30 million yuan ($4.43 million), one of the creditors surnamed Zhang told the Global Times on Monday. The group held posters and shouted "LETV pay us back." The police were called in to restore order.
Zhao Lei, general manager of Le Holdings tried to explain to the creditors that there is a difference between the company the service providers work for and LETV, but the creditors didn't accept that claim. Zhao then told them that their demands would be noted.
He also said that Jia Yueting, currently the chairman of LeEco's automobile unit, meant it when he promised to repay the money owed to financial institutions and suppliers of LETV by focusing on the automobile business.
Earlier this month, Jia resigned as chairman of LETV, the listed video-streaming branch of LeEco.
One item on the agenda of the extraordinary general meeting was the selection of a new chairman of LETV. As of press time, there had been no announcement.
In wrapping up the 15-minute meeting, Sun said that the operations of LETV, Leshi Zhixin and Le Vision Pictures are going well and capital is not an issue, according to a report by yicai.com.
On his way out, Sun denied that he would spend much time or energy in managing LETV, according to yicai.com. Prior to the meeting, there were some reports saying that Sun might take over.
On behalf of stakeholders, Sun admitted there are some difficulties. The plan is to placate the creditors, and then more loans are needed, according to the reports. The meeting also discussed the question of transactions among divisions of the group.
As for Sunac, it has no intention of reducing the debt ratio, because if it's lower, the company cannot develop, the reports said. Sunac is still optimistic about cash flow as well, the reports said.
