Chinese electric vehicle developer Faraday Future said on Monday it signed a new restructuring agreement with a unit of its main investor, Evergrande Health Industry Group Ltd, ending a bitter legal fight and clearing the path for raising funds.
Season Smart, which agreed to be bought by China’s Evergrande Health, will now own 32 percent preference shares, down from a previous 45 percent, according to filings.
Faraday, which has ambitions to overtake Tesla Inc, said the agreement would speed up its equity and debt financing efforts, adding that investors have expressed interest and several have already held talks.
Faraday said in November it was exploring strategic options, including debt and equity financing, two days after its co-founder Nick Sampson stepped down.
The company got into a legal tussle with Evergrande Health after a planned $2 billion investment went sour.
Under Monday’s agreement, both parties have agreed to withdraw and waive all current litigations and arbitration proceedings, and all rights to any future claims.
Reuters