Charles Lu, the co-founder and former chairman of Luckin Coffee Inc., has misplaced management of all his shares within the Chinese language espresso chain following a current court docket ruling, in response to individuals acquainted with the matter.
A court docket within the British Virgin Islands granted on July 9 an utility by banks to wind up Haode Investments Inc., an entity managed by Mr. Lu’s household belief that holds Luckin shares, and appointed KPMG because the liquidator of the belongings, in response to the individuals.
Mr. Lu has 14 days from the date of the ruling to attraction the choice, a number of the individuals stated. He didn’t reply to requests for remark.
With the court docket’s resolution, Centurium Capital, a Chinese language private-equity agency and an early backer of Luckin, has essentially the most voting rights within the firm, because of its holdings of so-called Class B shares that carry 10 occasions the votes of standard shares. Centurium now controls about 43% of Luckin’s voting rights, in response to an individual acquainted with the matter and calculations primarily based on Luckin’s filings.