Credit Suisse Targets Luckin Ex-Billionaire’s Family Assets

Caixin Global | May 22, 2020 at 3:53 PM
  • Lenders led by Credit Suisse Group AG are targeting the family assets of Luckin Coffee Inc. Chairman Lu Zhengyao as they try to recoup losses on more than $500 million in margin loans that soured after the company became embroiled in an accounting scandal.
  • Haode, controlled by Lu’s family trust, defaulted on a loan facility backed by Luckin shares.
  • Banks that participated in the loan facility to Lu’s investment vehicle have signaled they plan to sell Luckin shares pledged as collateral, though its unclear whether they’ve started offloading the stock or how much money they’ll be able to recoup.