Luckin Coffee Loses the Lawsuit and Will Repay Credit Suisse’s USD 300 Million Debt
The lender led by Credit Suisse Group won the case and will liquidate two entity companies controlled by Luckin Coffee Chairman Lu Zhengyao and his family. Luckin Coffee will repay the outstanding debt of USD 324.1 million. In September 2019, Luckin Coffee secured a USD 533 million loans from Credit Suisse Group with its stock as a guarantee. In the past two months, banks such as Credit Suisse and Morgan Stanley have obtained about USD 210 million by selling the stock mortgaged by Lu Zhengyao, but there is still a gap of more than USD 300 million in loans.