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Things Just Keep Getting Worse For China's Fallen Tech Upstart Le. Eco. Le. Eco’s dream of breaking into the US market and competing against Apple is now farther from reality than ever before. The Chinese tech firm’s American operation has had a difficult year with missed payrolls, disappearing employees, and overall poor sales. But the latest development in Le. Eco’s financial woes is sure to make things go from bad to worse.
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In 2. 01. 6, rising Chinese tech star Le. Eco made an aggressive move to conquer the unfamiliar US market . The ruling also affected assets linked to Yueting’s wife and three other Le. Eco affiliates. The Shanghai High People’s Court made the ruling last week, which clamped down on the assets linked to loan for the Le. Eco’s private smartphone brach, Le Mobile. Le. Eco began mounting debt in 2. US expansion by raising more than $6 billion.
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The heavy borrowing has taken a toll. Yueting admitted to shareholders last week that the company had made some mistakes with allocating funds.“The cash problems at the non- publicly traded businesses are more serious than when this crisis erupted,” Mr. Jia told investors, according to a transcript. According to the Times, the company has resources to cover the debt and will work with China Merchants Bank to repay it.
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