Founder of electric vehicle startup Faraday files for bankruptcy

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Jia Yueting, an entrepreneur who ran up billions of dollars in personal debts trying to build a business empire in China, has filed for bankruptcy in the U.S.

The black SUV that pulled up to an abandoned tire factory in Hanford, Calif., three years ago was supposed to transport the farm town south of Fresno into the future.The plan is also designed to help Faraday put together “equity financing efforts and prepare for an IPO,” according to the statement. Depending on the value of that proposed initial public offering, creditors may recover from 49% to 100% of what they are owed, according to reorganization plan documents filed in court.

A driver walks in front of the FFZero1 electric concept car from Faraday at CES Unveiled, a media preview event for the CES International trade show in 2016. Faraday is trying to develop an electric vehicle for sale in the U.S. and China. The company recently hired Carsten Breitfeld, a BMW veteran, toFaraday won a much-needed cash infusion when it formed a joint venture earlier this year with The9 Ltd., the Chinese online-gaming company.

 

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