Bankruptcy Law News

Faraday Founder’s Bankruptcy Disclosures Face DOJ Opposition

Jan. 24, 2020, 9:15 PM

Jia Yueting, the founder of electric car startup Faraday & Future Inc., is facing Justice Department opposition to his bankruptcy financial disclosures, the latest obstacle in the Chinese entrepreneur’s attempt to shed heavy debt in his native country.

Jia’s disclosure statement, which must be court-approved to support his Chapter 11 reorganization plan, fails to discuss his projected income over the next five years and what he owes his creditors, the U.S. Trustee, the DOJ’s bankruptcy watchdog, said in a Thursday filing.

The statement also lacks a liquidation analysis and information on what dividend creditors would receive under the reorganization plan,...

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