Faraday Future says "victory" over financing issue against Evergrande while limited by strict conditions

Shanghai (Gasgoo)- Faraday Future (FF) announced on October 25 that it made a “decisive victory” over the application for emergency relief against Evergrande Health submitted to Hong Kong International Arbitration Centre (HKIAC). The arbitrators ruled that Evergrande could no longer prevent FF from raising funds from other financing sources, according to FF China's official WeChat account.

FF said that the company has taken emergency management measures and formulated emergency financial planning after the financial crisis was caused by Evergrande's default. However, Evergrande Health, as FF's largest shareholder, refused to remove the relevant asset preservation for FF so that the startup's emergency financing plan was thwarted. Therefore, FF had to cut employee salaries by 20 percent and lay off other employees for self-rescue.

In addition, FF revealed that the R&D of the FF91 has already been completed and its first pre-production FF91 rolled off the production line on August 28, around a month after FF91's first body in white was revealed. Currently, its Hanford plant in California has accomplished a planning for the future large-scale vehicle mass production.

On the same day, Evergrande Health also released an inside information saying that the HKIAC vetoed Smart King (on behalf of FF)'s application about entirely depriving Season Smart of the right as Smart King's shareholder to approve financing plans and removing Season Smart's right to mortgage assets. Meanwhile, the arbitrators agreed Smart King to get funds limited by rigorous conditions as a temporary rescue measure in light of FF's current severe financing crisis.

According to previous reports, Evergrande Health, a subsidiary of the real estate developer China Evergrande Group, claimed in June that it has acquired 100% stake in the Hongkong-based Season Smart with HK$6.746 billion plowed. The acquisition allowed Evergrande Health to indirectly obtain a 45% stake in Smart King, the joint venture (JV) previously established by Season Smart Limited and Faraday Future.