. home.aspx

NEWS

home.aspx
   


Le.com’s cloud computing arm placed on national debtor blacklist

February 25, 2019 / BAILEY HU

LeCloud, a cloud-computing services subsidiary of streaming site, Le.com, was placed on a government blacklist for defaulting on debt repayment on Thursday. Le.com, also known as Leshi Internet, has been in financial trouble for several months, resulting in the resignations of three executives in December when shareholders began demanding repayment of at least RMB 3 billion. Being blacklisted impacts a company’s credit and may also affect government support and approvals, among other things. LeCloud’s blacklisting was filed January 28 and published on February 21, according to official government records, after a court in southern Guangdong province ruled that the company had failed to fulfill a payment of more than RMB 3 million to Guangdong Ruixin Network Co., Ltd. despite being able to do so. The sum includes around RMB 2.9 million for services as well as interest and other fees. The initial case brought by Ruixin dates back to 2017.