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Compal said:Financially-troubled LeEco begins payment for accounts receivable

Compal Electronics, in response to media reports that its client LeEco has run into financial difficulties, has disclosed it has already started receiving payments from the China vendor since mid-November under a scheme both sides have agreed on.

The Taiwan-based ODM maintained that the payment scheme has been implemented smoothly.

The total account receivable from LeEco stood at NT$8.29 billion (US$263 million) as of the end of September 2016, and NT$4.25 billion was overdue by 1-180 days, Compal said.

Compal said it has already set aside a bad debt reserve of NT$360 million in the third-quarter financial report.

The components of smartphones procured by LeEco and stored at Compal's factories have a total value higher than the overdue accounts receivable from LeEco, Compal noted.

Compal is one of the two ODMs for LeEco own-brand smartphones.