June 8, 2017 / 2:07 PM / a month ago

China's LeEco unit Leshi scraps plans to issue bonds worth 2 bln yuan

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Jia Yueting, co-founder and head of Le Holdings Co Ltd, also known as LeEco and formerly as LeTV, poses for a photo in front of a logo of his company after a Reuters interview at LeEco headquarters in Beijing, China, picture taken April 22, 2016. To match Insight AUTOSHOW-BEIJING/CHINA-LEECOJason Lee

HONG KONG (Reuters) - Leshi Internet Information & Technology, a listed unit of Chinese conglomerate LeEco, has scrapped plans to issue 2 billion yuan ($294 million) worth of bonds.

Leshi Internet Information & Technology Corp Beijing's update on its bond issue plans were posted on the Shenzhen stock exchange website (www.szse.cn/), with no reason given for the cancellation.

In its prospectus issued in September last year, Leshi said proceeds of the bonds, with maturities of up to five years, would be used to boost the company's working capital.

Company executives were not immediately available for comment.

Leshi's parent LeEco, founded by Chinese entrepreneur Jia Yueting, has been suffering a cash crunch due to its heady expansion from video streaming to TV sets, smartphones, sports and even electric vehicles in a little over a decade.

In May, LeEco said it will cut over 300 jobs at its U.S. business, amounting to almost three-quarters of its local workforce, as it streamlined global operations in response to a shortage of cash.

Reporting by Twinnie Siu in Hong Kong and Zhang Min in Beijing, editing by David Evans

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