Duration Finance News, on May 22, it was reported that several banks led by Credit Suisse are targeting the family assets of Luckin Coffee (LK.US) chairman Lu Zhengyao to make up for the more than 500 million US dollars of margin loan lost due to the company's involvement in the accounting scandal.
In April, after a default of Haode Investment (borrower), a shareholder of Luckin Coffee and Lu Zhengyao family trust, under a margin loan arrangement worth $518 million, the lender will exercise the lender's rights on the collateral, i.e., adopt a compulsory enforcement procedure, involving 76,350,094 shares of Luckin Coffee's American depositary shares (ADS).
According to an announcement published in the British Virgin Islands Gazette on Thursday (May 21), the Singapore branch of Credit Suisse is seeking the court's order to designate a liquidator for Haode Investment Inc.
was sued by 14 institutions
On the morning of May 15, the case of 14 overseas investors suing Luckin Coffee was heard in Hong Kong. The 14 investors were the company's bondholders and the lawsuit requested to recover about US$155.7 million (approximately RMB 1.1 billion) of losses. According to data from this website, Luckin Coffee issued two convertible bonds in January this year, with a coupon rate of 0.75%. After the financial " burst ", the prices of two bonds fell sharply.
According to duration financial data, as of press time, LK 0 ¾ 01/15/25 was 27.500, and the price fell by nearly 20%.
LK 0 ¾ 01/15/25 was 25.750, with the price falling by nearly 25%.
affiliate Shenzhou Youche Need to sell fund equity
On May 20, some media quoted people familiar with the matter as saying that a company affiliated with Luckin Coffee (LK.US) chairman Lu Zhengyao plans to sell its limited partners' rights worth RMB 1 billion in a RMB fund held by its Dasheng Capital.
People familiar with the matter said that Shenzhou Youche is looking for buyers for its 30.75% interest in Youche Industry Fund managed by Dazhen Capital.
Hearing on June 8
On the evening of May 19, Beijing time, Luckin Coffee issued a notice on its official website. On May 15, the company received a written notice from the U.S. Securities and Exchange Commission listing qualification department, and the Nasdaq exchange decided to delist the company. The hearing is scheduled to be held on June 8.
Before the hearing results are released, Luckin will continue to be listed on the Nasdaq, and the hearing is usually held 30 to 45 days after the hearing request date.
Luckin Coffee was launched in the United States in early 2019. The company announced last month that its chief operating officer and other employees forged sales agreements in an internal investigation.
