Leading Chinese technology company LeEco may get a breather from its ongoing liquidity issues as it is reportedly in talks for a potential capital infusion to the tune of $1.4 billion from an undisclosed potential investor.

LeEco has made several aggressive expansions in the recent past. In the process, it also started hemorrhaging money, leading to cash crisis. Earlier this year, the company CEO was reported to have sent a company-wide mail drawing attention to the issue.

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According to a filing by its Shenzhen-listed unit Leshi Internet Information and Technology, the company is still in the process of finalizing the details of the deal. The company may be required to continue the halt on its trading. However, the pause is not likely to exceed 10 days.

China Business News reported that the potential investor is likely an insurance company. However, LeEco refused to comment on the issue.

LeEco has diversified its business on a massive scale. The company dabbles into various industrial sectors ranging from self-driving cars to broadcasting business.

Following the announcement of cash crunch, the company had announced several cost-cutting measures including retrenchments. The company's sports broadcasting unit LeSports announced to slash its headcount by 10 percent.

However, the cash crunch has not stopped the company from pursuing further opportunities. LeEco is on its way to build a new electric car plant in China's Zhejiang province. The first phase of the project is reported to cost $1.6 billion. The plant will have the capacity to produce 400,000 vehicles a year.

TagsLeeco, LeSports, Zhejiang