Luckin’s shares fell another 20 per cent on Monday, before closing down 18.4 per cent at $4.39. The current market value is $1,097 million. Goldman Sachs reported Monday that it was under a $518 million margin loan facility following a default by Luckin Coffee shareholder Haode Investment.
The syndicate of lenders has instructed Credit Suisse Singapore Branch, which acts as a security trustee, to exercise lender rights on collateral, i.e. to take enforcement procedures involving 76.35 million shares of Luckin Coffee American Depositary Shares (ADS).
A total of 515 million luckin coffee Class B common shares and 95.445 million class A common shares were pledged, including additional pledged shares of entities controlled by luckin coffee CEO Qian Zhiya’s family trust, the report said.