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Faraday Future Debunked Claims Of Bankruptcy Filing

Faraday Future Debunked Claims Of Bankruptcy Filing

Rumors of a possible bankruptcy reemerged last month in Chinese media, after a purposed document outlining plan for Faraday Future. The idea of FF preparing to enter bankruptcy court isn’t particularly shocking.

By all accounts, the company hadn’t been able to secure investors for the $1 billion fundraising round.

Jia Yueting–the face of the startup and its main financier—is battling accusations that FF’s parent company in China committed fraud during a 2010 fundraising.

“The company will likely be required to file Chapter 11 bankruptcy by the middle of August 2017 as raising fresh capital within this time frame remains unlikely,” the alleged document says.

The intention, according to the document, was to raise $150 million in conjunction with the bankruptcy filing, and then new investors would pay an additional $130 million to settle claims with “outstanding creditors”

But here’s the thing—FF says the documents are fake.

These documents were not created by Faraday Future, nor were they created on behalf of Faraday Future or at Faraday Future’s request,” a spokesperson for Faraday Future told Jalopnik.

The company’s still in the process of focusing its efforts on completing the FF 91, officials said, and finishing a new manufacturing facility in California.

Faraday had initially planned five models, in addition to the FF 91 and focused on its mission similar to that of Nikola Motors.

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