Jaywalk Studio Called Out for Debt

A Weibo account posted how Jaywalk Studio, also known as Jiaxing Media, has an unpaid debt of 100 million yuan (~14 m USD).

In a quite a lengthy post published on December 29, it is stated that Jaywalk Media drew a loan of 90 million yuan and the interest is now 18.7 million yuan, hence the total debt of 108.7 million yuan. 

According to the Weibo post, first loan was made on November 17, 2017 and both parties agreed on loan and equity acquisition. Fast forward to 2022, Jaywalk Media has neither transferred any of the equity nor paid back the loan.

The post also described that Jaywalk Media had reduced their evaluation value from 6.5 billion to 4.5 billion yuan after three months of the agreement. 

While business disputes are not anything new, especially in Chinese entertainment scene, what drew people's attention to this particular case is Yang Mi being one of the three main shareholders of the Jaywalk Studio.

The equity transfer agreement, as shared in the post, was signed by all the shareholders including Yang Mi. 

According to the whistleblower, Yang Mi may have been deceived to sign such contract but they insisted that Yang Mi must bear the responsibility, too.

Jaywalk Studio is represented by its largest shareholder Zeng Jia with 45.56% of shares. The other shareholders are Zhao Ruoyao with 20.25% and Yang Mi with 15.19%, based on the data in Tianyancha App.

Yang Mi name is trending on both General and Entertainment hot search lists. Neither Jaywalk nor any of the shareholders including Yang Mi has responded. Jaywalk Studio has now issued a statement and a lawyer letter stating that such transaction has been terminated since the accuser had breached the contract and they would pursue legal actions against those who spread malicious information.

What do you think of this issue?

Source 1, 2.