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HONG KONG — Chinese tech amassed LeEco’s dream of all-around ascendancy hit a bank on Thursday, as it activated to wind up its Hong Kong accessory in the latest assurance of its ascent banking troubles.

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The address comes one anniversary afterwards the group’s authoritative stakeholder and co-founder Jia Yueting was placed on China’s official banish for debt defaulters afterwards a alternation of defaults and lawsuits from creditors afterward accelerated expansion.

Le Corp., a assemblage tasked with administering the group’s Asia-Pacific expansion, submitted an appliance for self-liquidation to the Hong Kong High Court, according to cloister records. A audition is appointed on Feb. 21.

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The afflicted aggregation was set up in August 2014 as the Chinese conglomerate’s adopted bounded headquarters, according to its official website. LeEco’s chump account hotline in Hong Kong has been abeyant and buzz calls to its Hong Kong appointment were not answered.

Former agents told Nikkei Asian Review that best of its 500 advisers in Hong Kong had larboard the aggregation by the end of July, and alone a few remained to wind up the business.

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Management at the Hong Kong assemblage had discussed filing a defalcation address at centralized affairs as aboriginal as May, a above agent said.

Besides Hong Kong, the annex additionally oversees the group’s India operation, which has “nearly shut down” according to a above LeEco India employee, who did not appetite to be named.

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The Chinese tech aggregation fabricated a high-profile admission in the Indian bazaar aftermost year, announcement several partnerships with bounded players for agreeable and vowing to accessible a analysis and development centermost in Bengalore with 1,000 employees.

In aloof a year, Jia’s appetite fell apart. A above LeEco India agent said alone two to three bodies in the accounts administration remained in the aggregation to abutting up accounts.

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However, LeEco’s Hong Kong-based sports alive arm LeSports, which screens all-embracing contest such as English Premier League and NBA games, said its operation will not be afflicted by contest at its sister company.

“LeSports HK and Le Corporation Limited are two absolutely altered entities … Its appliance for defalcation has annihilation to do with LeSports HK, and has no appulse to our business,” LeSports HK said in a account acquaint on its Facebook page.

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Jia’s LeEco has emerged as one of China’s best arresting tech companies by advancing amplification from alive online videos on to TV sets, smartphones and cyberbanking cars that claimed to aggressive those of U.S. behemothic Tesla.

LeEco’s Le Pro3 buzz is on affectation during a columnist accident in San Francisco. © Reuters

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LeEco’s Le Pro3 buzz is on affectation during a columnist accident in San Francisco. © Reuters

However, LeEco’s amplification backfired aftermost year aback Jia accepted that the aggregation was aggressive a banknote crunch. That was followed by abrogating account letters of the abandonment of several of its executives, assorted lawsuits from creditors and abundant job cuts globally.

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Most recently, Jia’s name and identification cardinal was acquaint on a defaulter website set up by China’s Supreme People’s Cloister afterwards his aggregation bootless to pay Ping An Securities amounts due of added than 470 actor yuan ($71.4 million). Bodies on the banish can be barred from travelling, demography up chief positions in companies and applying for acclaim cards.

Interventions by Sun Hongbin, administrator of acreage developer Sunac China and a adolescent Shanxi Province entrepreneur, accept bootless to turnaround  the company. Sun caked 15 billion yuan into LeEco subsidiaries in acknowledgment for disinterestedness stakes in January, and later provided 1.8 billion yuan in beginning loans to its video alive and TV unit.

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“I’ve never had any abjure my absolute life, until I invested in LeEco,” Sun said during a Hong Kong columnist appointment in September, according to South China Morning Post, admitting Sun still vowed to turnaround the afflicted aggregation at that time.

A agent in Sunac’s Tianjin address said it had no animadversion on Le Corp.’s appliance for liquidation.

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Leshi Internet Information & Technology, the listed assemblage of LeEco, swung to a net accident of 1.02 billion yuan in the third division from a accumulation in the year beforehand period.

Despite his business woes aback home, Jia is alive adamantine to become China’s Elon Musk — on the added ancillary of the Pacific.

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On Dec. 13, the altercation administrator said at an agent affair in Los Angeles that he had auspiciously aloft $1 billion for Faraday Future, an cyberbanking agent startup he co-founded, according to media reports. Despite actuality barred from demography up key controlling positions and dispatch bottomward from his own aggregation in China, Jia said he would booty over the role of CEO at the U.S. company.

Nikkei agents biographer Kiran Sharma in New Delhi contributed to this report.

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