HONG KONG/NEW YORK—Luckin Coffee Chairman Charles Zhengyao Lu and Chief Executive Jenny Zhiya Qian have handed over shares in the embattled Chinese coffee chain to lenders, after a company controlled by Lu’s family defaulted on a $518 million margin loan, one of the banks said on April 6.
The default comes after Luckin, a significant rival to Starbucks in China, said last week that much of its 2019 sales were fabricated, sending its shares plunging as much as 82 percent in U.S. trading and sparking an investigation by China’s securities regulator.
