Former Luckin Chairman Loses Control of Coffee Chain in Court


2020/07/14 19:27  Dow Jones Newswires

*DJ British Virgin Islands Court Rules in Favor of Winding Up Charles Lu's Shares in Luckin Coffee -- Sources

(MORE TO FOLLOW) Dow Jones Newswires

July 14, 2020 07:27 ET (11:27 GMT)

*DJ Centurium Capital Has the Most Voting Rights in Luckin Coffee -- Sources

(MORE TO FOLLOW) Dow Jones Newswires

July 14, 2020 07:27 ET (11:27 GMT)

*DJ Liquidator KPMG is the biggest shareholder of Luckin Coffee -- Sources

(MORE TO FOLLOW) Dow Jones Newswires

July 14, 2020 07:27 ET (11:27 GMT)

DJ Former Luckin Chairman Loses Control of Coffee Chain in Court

By Jing Yang

HONG KONG-- Charles Lu, the co-founder and former chairman of Luckin Coffee Inc., has lost control of all his shares in the Chinese coffee chain following a recent court ruling, according to people familiar with the matter.

A court in the British Virgin Islands granted on July 9 an application by banks to wind up Haode Investments Inc., an entity controlled by Mr. Lu's family trust that holds Luckin shares, and appointed KPMG as the liquidator of the assets, according to the people.

Mr. Lu has 14 days from the date of the ruling to appeal the decision, some of the people said. He didn't respond to requests for comment.

With the court's decision, Centurium Capital, a Chinese private-equity firm and an early backer of Luckin, has the most voting rights in the company, thanks to its holdings of so-called Class B shares that carry 10 times the votes of regular shares. Centurium now controls about 43% of Luckin's voting rights, according to a person familiar with the matter and calculations based on Luckin's filings.

On Monday, Luckin said Mr. Lu stepped down from the chairman post and is no longer a director on its board after a shareholder meeting last week. He has been replaced by Jinyi Guo, a longtime business associate of Mr. Lu's who will also serve as Luckin's permanent chief executive.

The Wall Street Journal reported last week that Mr. Lu determined the outcome of the shareholder vote, which has changed the composition of the company's board of directors.

Mr. Lu, who used to be Luckin's largest shareholder, defaulted on a $533 million margin loan from banks including units of Credit Suisse Group AG, Morgan Stanley, Goldman Sachs Group Inc., Barclays PLC, CICC and Haitong International after a disclosure of fabricated sales by Luckin caused its American depositary shares to plunge in value. Luckin's market capitalization topped $12 billion in January and has since fallen to less than $1 billion.

The three-year-old upstart rival to Starbucks Corp. in China revealed in April that more than $300 million of its 2019 sales were fabricated. Luckin has fired co-founder and CEO Jenny Qian and more than a dozen other employees, and its shares have been delisted from the Nasdaq Stock Market. They now trade on the over-the-counter market.

Banks earlier seized and sold some Luckin shares owned by Mr. Lu and Ms. Qian, and took legal action to wind up other entities in another offshore jurisdiction that Mr. Lu and his sister controlled.

The British Virgin Islands court has also granted creditors' application to wind up Summer Fame Ltd., an entity controlled by the family trust of Ms. Qian that holds Luckin shares, the people familiar with the matter said. She couldn't be reached for comment.

After the ruling and a similar court order last month in the Cayman Islands to wind up another of Mr. Lu's entities, KPMG, the court-appointed liquidator, owns about 18% of Luckin's Class A shares, according to people familiar with the matter and calculations based on Luckin's public filings.

Mr. Lu and Ms. Qian founded Luckin in 2017 and set out to challenge Starbucks's dominance in China and get Chinese consumers hooked on premium coffee. By the end of 2019, Luckin had opened more than 4,500 outlets across the country and said it was China's biggest coffee chain by stores, even though its sales fell short of its Starbucks's.

The Wall Street Journal reported in May that Luckin inflated sales by booking numerous purchases of vouchers that could be exchanged for cups of coffee. Some of the companies that bought such vouchers in bulk, as well as a company that received payments from Luckin for raw materials, had ties to Mr. Lu, according to the Journal's reporting.

An internal investigation by Luckin concluded that Mr. Lu "knew or should have known" of the fabricated transactions, the Journal previously reported. Mr. Lu denied that in an earlier email to the Journal.

Write to Jing Yang at

(END) Dow Jones Newswires

July 14, 2020 07:27 ET (11:27 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.

*DJ英属维尔京群岛法院裁决有利于清盘Charles Lu在Luckin Coffee的股份-消息来源



*DJ Centurium Capital在Luckin Coffee拥有最多投票权--消息人士



*DJ清盘公司毕马威是Luckin Coffee的最大股东--消息人士





香港-据知情人士透露,Luckin Coffee Inc.的联合创始人兼前董事长陆兆禧(Charles Lu)在最近的一项法院裁决后,已经失去了对这家中国咖啡连锁店的所有股份的控制权。

据知情人士透露,英属维尔京群岛的一家法院7月9日批准了银行提出的清盘豪德投资公司(Haode Investments Inc.)的申请,并指定毕马威(KPMG)为这些资产的清算人。浩德投资公司是陆兆禧家族信托控制的实体,持有Luckin的股份。


根据法院的裁决,中国私募股权公司、Luckin的早期支持者Centurium Capital拥有该公司最多的投票权,这要归功于它持有的所谓B类股的投票权是普通股的10倍。一位知情人士称,根据Luckin提交的文件和计算结果,Centurium现在控制着Luckin约43%的投票权。



曾是Luckin最大股东的陆兆禧拖欠了瑞信集团(Credit Suisse Group AG)、摩根士丹利(Morgan Stanley)、高盛集团(Goldman Sachs Group Inc.)、巴克莱(Barclays PLC)、中金公司(CICC)和海通国际(Haitong International)等银行一笔5.33亿美元的保证金贷款,此前Luckin的虚假销售披露导致其美国存托股票价值暴跌。Luckin的市值在1月份突破120亿美元,此后下降到不到10亿美元。

这家成立三年的星巴克公司(Starbucks Corp.)在中国的竞争对手星巴克(Starbucks Corp.)在4月份透露,其2019年的销售额中有超过3亿美元是捏造的。Luckin已经解雇了联合创始人兼首席执行官詹妮·钱和其他十几名员工,其股票已经从纳斯达克股票市场退市。他们现在在场外交易市场进行交易。


知情人士说,英属维尔京群岛法院还批准了债权人清盘Summer Fame Ltd.的申请。Summer Fame Ltd.是一家由钱学森家族信托控制的实体,持有Luckin的股票。记者无法联系到她置评。










Copyright©2019 FUTU. All rights reserved. FUTU does not provide any investment advice.