Core Viewpoint - The establishment of debt repayment trusts is becoming a popular solution for companies and individuals facing significant debt, allowing them to manage their assets and obligations more effectively while providing creditors with a clearer path to repayment [1][7]. Group 1: Debt Repayment Trusts - Faraday Future's founder, Jia Yueting, has set up a second debt repayment trust to expedite the repayment of debts in China [1]. - The trust mechanism involves placing valuable assets into a trust specifically for debt repayment, enhancing creditors' confidence in recovering their debts [1][6]. - The demand for bankruptcy service trusts has surged as more companies in debt seek similar solutions [1]. Group 2: Operational Mechanism - The assets placed in the trust are categorized into operational and liquidation assets, with management typically remaining under the original team but under strict supervision [3]. - There are two main models for risk disposal service trusts: the ongoing restructuring model and the sale restructuring model, each with different approaches to asset management and creditor repayment [3][6]. Group 3: Protection of Creditors' Rights - Creditors' rights are safeguarded through mechanisms such as asset independence, conversion of uncertain debts into clear trust beneficiary rights, and governance structures that include beneficiary meetings and management committees [5][6]. - The actual repayment amount to creditors depends on the execution of the trust plan, the quality of underlying assets, the trustee's professional capabilities, and the rationality of the trust scheme design [6]. Group 4: Breaking the "Prisoner's Dilemma" - Establishing a debt repayment trust helps alleviate the "prisoner's dilemma" faced by debtors, allowing for a more stable operational environment and the potential for new investments [7][8]. - Jia Yueting's previous and current trusts illustrate the strategy of transferring personal and company assets into trusts to protect them from immediate creditor actions while facilitating future repayment [7][8].