BEIJING, China — Luckin Coffee Inc. today announced that the Grand Court of the Cayman Islands has appointed Alexander Lawson of Alvarez & Marsal Cayman Islands Limited and Wing Sze Tiffany Wong of Alvarez & Marsal Asia Limited to act as “light-touch” Joint Provisional Liquidators of the Company (the “JPLs”).
The appointment of the JPLs was made pursuant to an application to appoint provisional liquidators by Luckin Coffee in response to a winding up petition filed by a creditor of the Company.
Alvarez & Marsal is a leading consulting firm that specializes in handling complex business issues and maximizing stakeholder value.
The Company believes the appointment of the JPLs will provide a stable platform to allow the Company and its advisors, including Houlihan Lokey (China) Limited (financial advisors to the Company), to facilitate the negotiation and restructuring of the Company’s financial obligations.
The Company will continue to operate its business under the day-to-day control of its Board of Directors with the supervision of the JPLs. The Company is and will continue to be committed to offering products with high quality, high affordability and high convenience to its customers.
As of June 30, 2020, the Company’s estimated preliminary unaudited cash and cash equivalents (excluding restricted cash and illiquid short-term investments) amounted to approximately USD780 million, with the majority of the cash located within the People’s Republic of China.
This amount is based on the information currently available to the Company and has not been audited or reviewed by the Company’s auditor. Accordingly, the Company’s actual cash and cash equivalents as of June 30, 2020 may differ from the preliminary balance presented here