Luckin Coffee chairman defaults on loan, surrenders company shares

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FILE PHOTO: Charles Zhengyao Lu, non-executive chairman of Luckin Coffee, speaks during the company’s IPO at the Nasdaq Market site in New York, U.S., May 17, 2019. REUTERS/Brendan McDermid

HONG KONG/NEW YORK (Reuters) – Luckin Coffee (LK.O) 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 margin loan, one of the banks said on Monday.

The default comes after Luckin, a major rival to Starbucks in China, said last week that much of its

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