Banks stand to lose more than $100m from a loan they made to the chairman of Luckin Coffee, whose share price plunged after the Chinese coffee chain last week said much of its 2019 sales were fabricated.
On Monday, Goldman Sachs said an entity controlled by Luckin chairman Charles Zhengyao Lu defaulted on a $518m margin loan facility. It said a group of lenders is putting 76.3 million of the Chinese company’s American depositary shares — representing the collateral for the loan — up for sale.
