LeEco failed to elect a new Chairman

Extraordinary meeting of shareholders of the company LeEco crisis, are unable to choose a new President. As we already reported, the founder of LeEco resigned as Chairman at the beginning of the month. Shareholders could choose only three new members of the Board of Directors.

The cause of the crisis was the too rapid expansion of conglomerate engaged in multiple business lines, resulting in LeEco fails to provide a sufficient inflow of funds in time to pay its creditors.

The situation escalated last week when LeEco sued the company Vizio, demanding $ 110 million in connection with the failed deal worth $ 2 billion.

To help LeEco can come the second largest shareholder of the company, the developer Sunac China Holdings. It is expected that he will gradually take control of different units LeEco.

Source: Reuters

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