Hong Kong The lending banks are taking action against the chairman of the Chinese coffeehouse chain Luckin Coffee. The institutions represented by Credit Suisse have initiated legal proceedings to liquidate Charles Zhengyao Lu’s private company, according to an official gazette in the British Virgin Islands. His company, called Haode Investments, is registered in the British overseas territory. A court hearing on the liquidation is scheduled for June 8.
The Starbucks rival admitted manipulating the balance sheet for 2019 in April. Haode then went bankrupt regarding the loan backed by Luckin shares. The Luckin shares were taken over by the creditors.