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Banks stand to lose more than $100 million from a loan they made to the chairman of Luckin Coffee Inc., LK, -17.28% whose share price plunged after the Chinese coffee chain last week said much of its 2019 sales were fabricated.
On Monday, Goldman Sachs Group Inc. GS, +6.13% said an entity controlled by Luckin Chairman Charles Zhengyao Lu defaulted on a $518 million margin loan facility. It said a group of lenders is putting 76.3 million of the Chinese company’s American depositary shares—representing the collateral for the loan—up for sale.
