Chairman of Scandal-Hit Luckin Suffers Double Blow to Credit

Caixin Global | Apr 7, 2020 at 6:13 PM
  • An entity controlled by the chairman of Luckin Coffee Inc. defaulted on a $518 million loan facility and another company he controls had its credit rating lowered.
  • One of the latest developments saw investment banking giant Goldman Sachs announce late Monday it was taking action after one of Lu’s affiliates, Haode Investment Inc., defaulted on a $518 million margin loan facility.
  • In 2017, Haode provided a 1.8 million yuan loan to Luckin; and the next year Luckin provided a six-month interest-free 147.6 million yuan loan to Haode.