LeEco founder to remain in US over debt issues

Founder of LeEco Jia Yueting. [File Photo: meldingcloud.com]

LeEco co-founder Jia Yueting has authorized his wife and brother to handle his company's debt issues in China, reports thepaper.cn.

The announcement is in response to the demands from Beijing securities regulators, which had been demanding he return to China before the end of this past year.

Jia has issued a statement saying he is preoccupied with his auto investment deal in the United States. 

Last week, the regulators ordered Jia to return to China and pay LeEco's debts worth an estimated 7.3 million US dollars.

Jia has asked his brother to meet with the securities authorities. 

Jia Yueting's wife, Gan Wei, has also confirmed on her verified social media account that she is working with a team on the debt issues. 

LeEco has been struggling with financial problems since 2016 due to its aggressive expansion and poor management. 

A court in Shanghai has frozen a total of 1.2 billion yuan ($182 million) worth of assets from both LeEco and Jia and Gan's personal accounts. 

Jia has since resigned as CEO of LeEco's main listed unit and has remained in the United States since last July.