A bond sale by the Shenzhen-listed arm of embattled company LeEco has been cancelled, after the group was asked to address regulators’ concerns about the health of its financials, the Financial Times reports. Documents posted on the Shenzhen Stock Exchange show that the bond sale by Leshi Internet Information and Technology Company has been terminated. The group gave no reason for the cancellation of the sale, which was intended to raise Rmb2bn ($300m). Leshi said in a prospectus that the bond proceeds would “be used to supplement the company’s liquidity.” The group filed a bond prospectus on September 23 last year. However, Leshi encountered queries from financial regulators, who questioned whether the company’s financials could support the bonds it proposed to sell. Auditors submitted three information requests before the termination of the bond sale this week. These included a request for a clarification on how a planned restructuring of the company would affect bond solvency.
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