LeEco's Coolpad says lawsuit filed against unit over loan due next month (updated)

Coolpad

27/07/2017 04:17

(Updates to indicate picture available for story) 
    HONG KONG, July 27 (Reuters) - Chinese smartphone maker 
Coolpad Group  2369.HK , part of the cash-strapped LeEco 
technology conglomerate, said on Thursday a bank has sued a 
subsidiary, demanding early repayment of an 80 million yuan 
($11.9 million) loan due Aug. 15. 
    LeEco, a smart cars to online content conglomerate that is 
grappling with the fallout of expanding too fast, has been under 
growing pressure from its creditors and business partners. This 
month a court in Shanghai ordered a freeze on some of its assets 
over late payments to a bank.  urn:newsml:reuters.com:*:nL3N1JV3JD 
    Coolpad said in a statement that the unit, Yulong Computer 
Communication Technology, had been sued by a Ping An Bank branch 
which argues that it can call in the loan as the financial 
situation of the guarantor, another Coolpad unit, had 
deteriorated. 
    Coolpad added that it has consulted lawyers regarding the 
case and was gathering evidence to defend itself in court.       
    Coolpad has repeatedly delayed reporting its earnings, which 
were due to be reported in March, because of audit issues since 
March. Its shares have been suspended since March 30. 
 urn:newsml:reuters.com:*:nL3N1JR2SW 
    LeEco founder Jia Yueting this month resigned as chairman of 
the group's main listed unit, Leshi Internet Information & 
Technology Corp Beijing  300104.SZ , after making a public plea 
for patience.  urn:newsml:reuters.com:*:nL3N1JX26E   
 ($1 = 6.7530 Chinese yuan) 
 
 (Reporting by Clare Jim; Editing by Edwina Gibbs) 
 ((clare.jim@thomsonreuters.com; +852 2912 6653; Reuters 
Messaging: clare.jim.thomsonreuters.com@reuters.net)) 
 
Keywords: COOLPAD GROUP LAWSUIT/