On the night of June 7th, information on Shenzhen Stock Exchange’s website shows that LETV’s RMB 2b corporate bond will face issuance suspension, meaning a financial failure and cutting off management team and shareholders’ hope.

According to the preliminary offering circular, the bond issuance has been passed by the extraordinary shareholders’ general meeting with a financing number of no larger than MRB 3b. Finally, the issuing scale is set at RMB 2b to supplement the corporate’s cash flow.

Inquiries from SZSE help us conclude that the worsening financial conditions are the main reason for LETV’s financial failure, including the large stock rights pledge, existing debt paying risk and credit downgrades.

It’s said that the bond issuance suspension will worsening LETV’s capital chain crisis. Recently, many companies have sued LETV for its default on loans. In the meantime, all the LETV system is undergoing mass layoffs. Information shows that as many as 50% staff is involved in the layoff, covering subsidiaries including LE Mobile Phones, LE Sports and LE Auto.

It’s calculated that the losses in the past two years have occupied billions of capital for LETV and generated a large amount of debts in the meantime, which is the main cause for the above financial crisis.