Lu Zhengyao, Chairman of Luckin Coffee, Sues Credit Suisse
Lu Xingyao, chairman of Luckin Coffee, has sued Credit Suisse, demanding that the latter pay compensation for alleged breach of duties in a USD 532 million loan arrangement. 1) It is reported that Haode Investment applied for an injunction order to prohibit the bank from initiating legal proceedings in any jurisdiction outside Hong Kong. Court documents show that Haode is seeking the court to declare that Credit Suisse's request under the loan arrangement issued from April 3 to April 17 is invalid, so no default has occurred under the arrangement. Credit Suisse issued a mandatory early repayment notice on April 3 on behalf of its Hong Kong branch, Goldman Sachs, Barclays, CICC Hong Kong Finance, Haitong International Investment and Morgan Stanley. 2) According to a report on April 6, Haode controlled by Luckin Coffee shareholder Lu Zhengyao breached its position and the lender was entrusting Credit Suisse Singapore Branch to take enforcement measures with a loan size of USD 518 million or involving 76.35 million shares of Luckin Coffee American Depositary Shares (ADS), including entity pledged shares controlled by the former CEO of Luckin Coffee Qian Zhiya's family trust.