Hong Kong Newspaper Sues Cash-Strapped LeEco for Unpaid Debt
(Hong Kong and Beijing) — One of the many companies owed money by cash-strapped LeEco has sued the online video firm in Hong Kong to recover the debt — a move that analysts said could touch off a domino effect with other creditors that are owed millions of dollars.
LeEco rose to prominence as one of China's earliest online video services, but has gone on a major expansion binge over the last two years into such diverse areas as smartphones, electric cars and movie making. In the process, it has incurred debts and spending commitments worth billions of dollars, sparking concerns the company has expanded too quickly.
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