Jia Yueting (R) Photo/VCG

May 8 (NBD) -- Embattled Chinese entrepreneur Jia Yueting, the largest shareholder and founder of debt-ridden Leshi, has made noticeable progress recently in his personal bankruptcy case as the creditor voting results was officially announced on Friday.

The Chapter 11 bankruptcy case of Jia Yueting, also founder of U.S.-based electric vehicle startup Faraday Future (FF), has passed voting at the creditor level.

About 70 percent of Jia's creditors took part in the voting, and over 80 percent of the voters supported the previously submitted bankruptcy and restructuring plan that involves 2.96 billion U.S. dollars, according to third-party legal service provider EPIQ.

Jia's debt management team expressed gratitude to creditors including those who voted against the plan, and said it has started preparing for the final hearing in the U.S. Bankruptcy Court, Central District of California scheduled on May 21.

If the bankruptcy plan is eventually approved, Jia's personal debt in the U.S. will be discharged, which is expected to clear investors' concerns of the debt's impact on FF.

On April 14, Jia's debt management team organized an online meeting with creditors and explained in detail the terms of the bankruptcy plan, in order to convince creditors that the plan is in their best interest.

Later on April 22, 26 partners of Faraday Future published an open letter to Jia's creditors to plead for their support in the vote, saying only the success of Faraday Future can ensure Jia's ability to fully pay back his debt, and invited them to become shareholders of the company. 

Faraday Future said the voting result is a big boost to its financing efforts and its strategy to make both the U.S. and China as home markets.

According to a Faraday Future insider, the company is seeking funding via debt and equity in the Middle East, Europe, and Asia Pacific, and multiple investors have explicitly expressed interest.

Email: gaohan@ndb.com.cn