Faraday Future CEO Jia Yueting To Step Down As Part Of Restructuring Plan

Faraday Future chief executive Jia Yueting is set to step down from his position at the car manufacturer as part of a comprehensive restructuring plan.

Pan Daily reports that the somewhat-controversial Yueting will look to clear the company’s and his own debts by establishing a trust fund paid with his Faraday Future shares to ultimately repay creditors.

The electric car manufacturer believes a future initial public offering will net it the funds required to repay its mountains of debt. Pan Daily reports that Yueting himself has stated he will take on the full responsibility of paying back all of his creditors. He has also indicated that he will sell some of his shares, but didn’t disclose the exact amount.

Also Read: Faraday Future Clings To Life With $225 Million Bridge Loan

The executive has been shrouded in controversy for years and, at one stage in 2017, was ordered back to his homeland of China to repay debts, to which he did not comply. Various court moves were also made to freeze his assets as well as his ownership stake in Faraday Future.

Things looked to be improving for the startup last year after it received $854 million from Evergrande Health in exchange for a 45 per cent stake, but the company attempted to back out of this deal in December. Evergrande’s investment totaled $2 billion, and after the initial investment, the remaining $1.2 billion would be dispersed throughout 2019 and 2020. In May 2019, Faraday Future secured a $225 million bridge loan.