The Wall Street Journal: Electric-car startup Faraday Future puts headquarters up for collateral

Faraday Future, a high-profile electric-car startup, has pledged its corporate headquarters in Los Angeles as collateral to secure a rescue loan intended to keep the lights on while it seeks new investors, according to people familiar with the matter.

The company has agreed to borrow about $14 million from Innovatus Capital Partners LLC, a New York investment firm, for a term of one year, the people said. The loan comes as Faraday’s main investor, Chinese billionaire Jia Yueting, faces financial uncertainty at LeEco Holdings, raising questions about the auto maker’s future.

A Shanghai court in July froze $181 million in assets partially owned by Jia over a missed interest payment, and an additional $2.3 billion in shares in the firm’s listed unit.

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