Shares of Luckin Coffee Inc (NASDAQ:LK) were halted last week for pending news. At the time of this writing, the stock had not resumed trading, and it’s unclear what the pending news is. However, there are some possibilities.
On Monday, a press release issued by Goldman Sachs said Haode Investment defaulted on a $518 million margin loan to a collection of banks. Goldman was one of those banks. Haode is controlled by the family trust of Luckin Coffee Chairman Charles Zhengyao Lu. The shares that were pledged as collateral on the loan were controlled by CEO Jenny Zhiya Qian’s family trust.