China's Leshi Holdings secures $600 million in commitments of support

Reuters News
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Posted: Nov 15, 2016 5:00 AM

SHANGHAI (Reuters) - China's Leshi Holdings said on Tuesday it had secured commitments for $600 million to support its automotive unit and LeEco high-tech business, which has been grappling with a cash crunch.

In a statement sent to Reuters, Leshi said the fund commitments came from more than 10 Chinese companies. An initial tranche of $300 million would be delivered by the end of the month and be invested in the auto business and LeEco Global, it said.

LeEco, which has invested in high-tech products from electric cars to smartphones, was facing a shortage of cash and suffering from expanding too fast and in too many directions, its chief executive told staff in a letter last week.

(Reporting by John Ruwitch and Samuel Shen; Editing by Clarence Fernandez)