The billionaire founder of electric-car startup Faraday Future — who boldly challenged Tesla with a far-out car design in 2015, only to file for personal bankruptcy last fall — said Friday his Chapter 11 restructuring plan has won court approval.
The nod from a federal bankruptcy judge is a win for Faraday Future’s ex-chief executive YT Jia, whose personal debts range anywhere from $3.5 billion to nearly $8 billion according to his financial disclosures, and remove a significant hurdle for Faraday’s equity financing efforts, the company said in a statement.
“YT’s creditors are now one step closer to obtaining the valuable recovery upon their claims and the plan has positioned YT’s creditors to enjoy the future success of FF along with the FF Partners and employees.
Jia has said in court filings that potential investors had been waiting on the his bankruptcy case to be put to rest before pouring any more money into the company.
The cash-strapped company, which is angling to begin production its first ever vehicle, last month confirmed to The Verge that it received a $9 million loan from the Small Business Association’s Paycheck Protection Program in order to keep its operations running.
Faraday has said that it expects to begin deliveries of its first-ever vehicle, the FF 91, “approximately 9 months following the closing of successful equity funding.”
The California-based company turned heads in 2015 when it released renderings of a vehicle that looked like something out of “Tron.”