Creditors of Shandong Ruyi Technology Group Co., Ltd. will seek control of The LYCRA Company (Lycra) after Ruyi defaulted on a $400 million loan it took from them to buy the fibre maker. A statement from the creditors on February 21, 2022 said that Ruyi, known for its ambition to become the LVMH (LVMH.PA) of China, has not been able to repay the Lycra loan since May 2019. The lenders include China Everbright Limited (SEHK:165) and Tor Investment Management, L.P., along with Lindeman Partners Asset Management Co., Ltd. and its affiliate Lindeman Asia Investment Co., Ltd. (KOSDAQ:A277070).

Their steps to assume full equity control of Lycra include the appointment of receivers for the assets of Lycra's parent. Ruyi and Lycra did not respond immediately to requests for comment on February 22, 2022. Reuters reported in 2020 that some of Ruyi's creditors had hired a restructuring specialist to sound out potential buyers for Lycra after weakening financial performance of the manufacturer of the eponymous stretchy material fears of a loan default.

However, no deal materialised and Ruyi decided to look for alternative means of rescue.