Faraday & Future Founder’s Bankruptcy Plan Approved for Voting

Yueting Jia, the founder of electric car startup Faraday & Future Inc., won bankruptcy court approval of his disclosure statement describing his proposed reorganization plan after surviving a creditor’s motion to dismiss the Chapter 11 case.

Friday’s order from Judge Vincent P. Zurzolo of the U.S. Bankruptcy Court for the Central District of California allows Jia to solicit creditors’ votes for the plan, which uses his ownership stake in Faraday & Future to establish a trust for paying his creditors.

Jia also wants to obtain financing and prepare Faraday for an initial public offering to increase creditors’ recovery, he said ...