(Reuters) — The founding father of debt-laden tech conglomerate LeEco has defied orders from Chinese regulators to return to the nation earlier than end-2017, saying he wanted to remain within the United States as a fundraising for his electrical automotive startup was making progress.

The Beijing department of the China Securities Regulatory Commission (CSRC) issued a discover final week ordering LeEco CEO Jia Yueting to return to China to type out a mounting debt pile linked to his corporations and shield traders’ rights.

Jia stated in an announcement that he had requested his brother, Jia Yuemin, to satisfy the regulator face-to-face final Friday to supply a report after the discover was issued.

“I’m deeply sorry and blame myself for the damaging affect of LeEco’s debt disaster,” he stated within the assertion that was posted on his official WeChat account on Tuesday.

“The fundraising for Faraday Future within the United States is making vital progress and there are lots of duties I must push ahead as a way to make sure the manufacturing and well timed supply of the FF91,” he stated, referring to a luxurious electrical car (EV) that LeEco is creating with Faraday Future.

Questions have been raised in regards to the outlook for the FF91, given LeEco’s spiraling money issues in addition to its resolution to drag out of a joint challenge with British sports activities carmaker Aston Martin to develop RapidE electrical automotive.

LeEco, an leisure, electronics and electrical autos group, has struggled to pay its money owed after speedy enlargement into a number of sectors sparked a money crunch, a plunge within the shares of a listed unit and led to a number of defaults. At its peak LeEco owed collectors 10 billion yuan ($1.54 billion).

Struggling to help objectives that included beating Elon Musk’s Tesla Motors in premium EV making, Jia has been making an attempt to journey out the money crunch by taking measures such chopping employees numbers and promoting belongings.

Jia stated he had requested his spouse, Gan Wei, and brother to characterize him at Leshi Internet Information & Technology Corp in exercising shareholder rights and dealing with the sale of belongings. Jia stepped down as CEO of the group’s foremost listed unit in May final yr.

He additionally cited a single late cost in July as being one of many key causes of LeEco’s cash-flow issues, saying it led to the freezing of his belongings and prompted a slew of early mortgage recoveries. He stated “false and malicious” stories had impacted the enterprise.

Jia was positioned on an official blacklist of debt defaulters in early December, a transfer taken by Chinese courts to place stress on folks and entities to repay money owed.

(Reporting by Brenda Goh; Editing by Himani Sarkar)

This article sources data from VentureBeat