Luckin Chairman Lu Zhengyao Resigns from CAR, the Car Rental Company He Owned Has $168 million in Debt

Luckin Coffee chairman Lu Zhengyao resigned on Tuesday from the board of China Auto Rental Co., Ltd. (CAR), Tencent Finance reported.

Established in 2007 and headquartered in Beijing, the leading car rental company in China now has $168 million in debt. According to the loan agreement terms CAR signed, the debt could be due upon the lender’s request if Lu is no longer on the board. CAR hasn’t received the overdue payment letter yet and is trying to ask for a waiver.

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According to the announcement, chairman Lu resigned from CAR to focus on UCAR Inc, the parent company of CAR offering auto electronic commerce platform services in China, and other business. Lu didn’t have disagreements with other members of the board.