MILAN – Charles Lu Zhengyao, the co-founder and former chairman of Luckin Coffee, has lost control of all his shares in the Chinese coffee chain Luckin Coffee following a recent court ruling.
In fact, a court in the British Virgin Islands granted on 9 July an application by banks to wind up Haode Investments, an entity controlled by Lu’s family trust that holds Luckin shares, and appointed KPMG as the liquidator of the assets, reports the Wall Street Journal quoting people familiar with the matter.
Lu, who used to be Luckin’s largest shareholder, defaulted in early April on a $533m margin loan from banks including units of Crédit Suisse, Morgan Stanley, Goldman Sachs, Barclays and Haitong International after a disclosure of fabricated sales by Luckin caused its American depositary shares to plunge in value. Lu had pledged Luckin shares as collateral.
Dear Reader,
you are not required to purchase anything for certain limited use of Comunicaffe International.
However, if you do not purchase a subscription, your access to our contents will be limited.
For further information about our subscriptions please visit the subscription page.
If you are already subscribed please type here your credentials:
