HONG KONG (Reuters) – The banks that lent $518 million to Luckin Espresso (LK.O) Chairman Charles Zhengyao Lu have began courtroom proceedings to liquidate his personal firm, a authorities gazette for the British Virgin Islands confirmed. FILE PHOTO: A Luckin Espresso brand is seen at a closed retailer in Beijing, following the novel coronavirus illness (COVID-19) outbreak, China, April 16, 2020. REUTERS/Tingshu WangThe discover, revealed on Thursday and reproduced in Hong Kong media on Friday, names Credit score Suisse because the safety agent, which suggests it can act on behalf of the banks behind the loan. A courtroom listening to might be held on the island of Tortola on June 8. Credit score Suisse (CSGN.S) has proposed Grant Thornton be appointed as liquidators of Haode Investments Co., Mr Lu’s personal firm, which is registered within the Virgin Islands. Credit score Suisse declined to remark. Luckin didn’t reply to calls or an emailed request for remark. The banks behind the loan listed below are Credit score Suisse, Goldman Sachs (GS.N), Morgan Stanley (MS.N), Barclays (BARC.L), China Worldwide Capital Company and Haitong Worldwide Securities (0665.HK), individuals aware of the matter have mentioned. Luckin’s fortunes have crashed since an inner probe confirmed a lot of its 2019 gross sales have been fabricated and overestimated by 2.2 billion yuan ($309 million). Haode then defaulted on the loan that had been secured by hundreds of thousands of Luckin shares. The collectors seized management of the Luckin shares owned by Haode and used as collateral, a discover revealed by Goldman Sachs on April 6 mentioned. Goldman Sachs had been appointed to supervise the stock’s sale however Luckin had been suspended from buying and selling on the Nasdaq for greater than a month till Wednesday evening. Luckin was advised by the Nasdaq on Tuesday its shares can be delisted due to “public concerns” over the corporate. Luckin mentioned it will enchantment the ruling and stay a listed stock till a choice is made, anticipated inside two months. Its Nasdaq-listed shares have cratered from a peak of $50.02 in January to the shut of $2.01 on Thursday. ($1 = 7.1291 Chinese language yuan) Reporting by Scott Murdoch in Hong Kong, Sophie Yu in Beijing; Modifying by Himani SarkarOur Requirements:The Thomson Reuters Belief Rules.