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Luckin Coffee announces brief extension of milestone date in restructuring agreement

Luckin Coffee MarcumBP

BEIJING, China – Luckin Coffee Inc. (in Provisional Liquidation) (“Luckin Coffee”) (OTC: LKNCY) today announced that it has extended a milestone under the Restructuring Support Agreement (the “RSA”)¹ dated as of March 16, 2021. As previously reported and as further detailed in the RSA, Luckin Coffee expects to implement the restructuring of its US$460 million 0.75% Convertible Senior Notes due 2025 (the “Existing Notes”) through a scheme of arrangement (the “Scheme”) pursuant to section 86 of the Companies Act (2021 Revision) of the Cayman Islands (the “Companies Act”).

Luckin Coffee, the Joint Provisional Liquidators,² and the holders of a majority of Luckin Coffee’s Existing Notes (the “Majority Noteholders”) extended the milestone to launch the Scheme (the “Scheme Launch Milestone”) from September 1, 2021 to September 22, 2021.³

Luckin Coffee, the Joint Provisional Liquidators and the holders of the Existing Notes party to the RSA remain committed to the Restructuring and have significantly progressed the documentation needed to implement the Scheme. The brief extension of the Scheme Launch Milestone will allow additional time for the relevant parties to continue documenting the agreed terms of the Restructuring, as set forth in the RSA.

Additional Information

In connection with the Restructuring, Luckin Coffee is advised by Davis Polk & Wardwell LLP as legal counsel and Houlihan Lokey as financial advisor. Holders of Existing Notes may contact Houlihan Lokey at HL_Lake@HL.com with any questions regarding the amendment to the RSA, the RSA or the Restructuring.

¹ Capitalized terms not otherwise defined herein shall have the meaning ascribed to them in the RSA.

² As previously reported, on July 15, 2020, the Grand Court of the Cayman Islands (the “Cayman Court”) 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 Luckin Coffee (the “Joint Provisional Liquidators”). Luckin Coffee continues to operate its business and implement the Restructuring under the day-to-day control of its Board of Directors, under the supervision of the Joint Provisional Liquidators.

³ Launching the Scheme requires filing (i) a petition with the Cayman Court under section 86 of the Companies Act for an order approving the Scheme and (ii) a summons with the Cayman Court for directions to convene the relevant meeting of creditors in respect of the Scheme. The relevant parties may agree to further extend the Scheme Launch Milestone, as appropriate.