Judge Raj Parker will issue an order to liquidate Primus Investments Fund and Mayer Investments Fund. According to the ruling of the Cayman Islands court on June 16, these two entities held shares in LuckinCoffee, which was ultimately controlled by the Lu Zhengyao family.
The court rejected Primus and Meyer’s request to dismiss the liquidation petition, allowing them to repay the debt by refinancing or selling assets, saying there is no credible evidence that the debt will be repaid within a reasonable time.
The judge said in the document: “There is no evidence that if the bank is willing to exercise its contractual rights in advance, the debtor can fulfill its contractual obligations.”
Loan banks provided $533 million in loan financing in September, secured by LuckinCoffee stock. The bank is also seeking a court order in the British Virgin Islands for Haode Investment Inc. Appoint liquidator. The company is also controlled by Lu Zhengyao Family Trust.
According to people familiar with the matter, banks including Credit Suisse and Morgan Stanley have received about $210 million in the past two months by selling Lu Zhengyao’s stock of LuckinCoffee as a mortgage, and the loan for the founder’s margin still faces 3 Billions of dollars.