LeTV is seeking public advice on how to repay its massive debt. On December 4, news about "LeTV's $23.8 billion debt and its plan to invest $180 million in stocks" trended online. According to the announcement, LeTV aims to generate additional returns by investing in stocks without disrupting its core business operations. However, the company quickly clarified that the plan was misinterpreted, stating the funds would be used to "improve capital efficiency."
When questioned why it isn't repaying debts instead of investing, LeTV responded helplessly: "It's not that we won't repay, but we don’t know how." The company emphasized that survival is its top priority, as it ensures communication channels remain open for creditors, investors, and users.
**Investing Instead of Repaying Debt?** LeTV's investment plan includes subscribing to new shares on the Beijing Stock Exchange, trading secondary market stocks, and reverse repurchase agreements for government bonds. The $180 million will be strictly allocated: at least $150 million for "risk-free investments" like new share subscriptions and bond repurchases, while the remaining $30 million (with over 50% in bank stocks and 80% in CSI 300 index constituents) can be used for secondary market trading.
The company claims that subscribing to Beijing Stock Exchange IPOs is a guaranteed profit, citing 100% returns on all 25 new listings in 2025. This marks LeTV's second stock investment announcement this year, following a $50 million plan in April.
**Financial Struggles Persist** LeTV reported a net loss of $24.2 million for the first three quarters of 2025, with revenue down 2.88% year-on-year. Its total liabilities have risen steadily, reaching $23.76 billion by the end of 2024, while its net assets stood at -$21.3 billion. The company admits it operates under heavy debt but lacks a viable repayment strategy, with a potential repayment rate below 1.5%.
**Legal Battles with Panda Electronics** LeTV has publicly accused its former manufacturing partner, Nanjing Panda Electronics (now renamed Jingye Home Appliances), of evading debt obligations and delivering substandard products. Court rulings ordered Panda to pay $13.47 million in damages, but the company allegedly avoided payment by rebranding and filing for bankruptcy.
LeTV has secured property preservation measures and continues to pursue legal action. The dispute stems from defective TV production in 2019–2022, where failure rates reached 80% for some models, far exceeding industry standards.
**Can "Empresses in the Palace" Save LeTV?** Despite rumors of relying on revenue from the drama *Empresses in the Palace*, LeTV denies this, stating the show contributes less than 5% of its income. The company holds rights to other popular series and explores new ventures like smart home products. However, its financial woes persist, with 16 court rulings labeling it a "discredited entity."
LeTV insists its 300+ employees are working hard to revive the business, generating over $3 million annually from IP licensing. Yet, with $23.8 billion in debt and a controversial $180 million investment plan, the company's future remains uncertain.
What do you think—can LeTV find a way out? Share your thoughts in the comments!
Comments