It’s no secret that LeEco is hurting for cash, but apparently seeking new investors hasn’t gone very well for them. Now a new report is suggesting that the company is flipping some of its assets to stay ahead of its debt pile.
Originally, LeEco was planning on opening up headquarters in the US, so it purchased a 49 acre spot of land from Yahoo. After less than a year, however, they’re planning on selling the plot for $260 million to handle their current financial situation. In LeEco’s defense, that’s actually $10 million more than what they paid for it, so they’re coming out a bit ahead, although that HQ thing isn’t going to pan out.
The sale is reportedly between LeEco and a small Chinese developer Genzon Group, who has confirmed that they’re in talks to make the acquisition but didn’t specify what they were planning on doing with the land. There’s a realistic chance that the deal falls through, but either way, it looks like LeEco is getting into the business of shaving off assets to pay down debt. That’s not usually where you want your company to be, honestly, but it’s better than declaring bankruptcy.