Monday 23 May 2022

Luckin Coffee announces Cayman’s Court Sanction of Scheme of Arrangement

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BEIJING, China – Luckin Coffee Inc. (in Provisional Liquidation) (“Luckin Coffee” or the “Company”) (OTC: LKNCY) announced today that the Grand Court of the Cayman Islands (the “Cayman Court”) has sanctioned the scheme of arrangement (the “Scheme”) proposed by Luckin Coffee with the support of its Joint Provisional Liquidators,¹ in relation to the restructuring of its $460 million 0.75% Convertible Senior Notes due 2025 (“Existing Notes”).

Sanction Hearing

As previously announced, following the Scheme being unanimously approved by all attending creditors (in person or by proxy) at the Scheme meeting on November, 30 2021, the hearing of the Company’s petition seeking sanction of the Scheme took place before the Cayman Court on December 13, 2021 (Cayman Islands time).

The Company is pleased to announce that the Cayman Court sanctioned the Scheme, pursuant to section 86 of the Companies Act, and has entered an order to that effect (the “Sanction Order”).

The occurrence of the effective date of the Scheme remains subject to the filing of the sealed Sanction Order with the Registrar of Companies in the Cayman Islands and the entry of a final order of the United States Bankruptcy Court for the Southern District of New York giving full force and effect to the Scheme in the territorial jurisdiction of the United States (the “Scheme Enforcement Order”).

Hearing Regarding Enforcement of the Scheme in the United States

The hearing of the Joint Provisional Liquidators’ motion for entry of the Scheme Enforcement Order will take place at 10:00 a.m. (New York time) on December 16, 2021. All creditors affected by the Scheme are entitled to attend and be heard at the hearing.

Additional Information

In connection with the Company’s debt restructuring and the Scheme, Luckin Coffee is advised by Davis Polk & Wardwell LLP as legal counsel, Harney Westwood & Riegels as Cayman Islands legal counsel and Houlihan Lokey as financial advisor. Holders of Existing Notes may contact Houlihan Lokey at HL_Lake@HL.com or the Joint Provisional Liquidators at luckin@alvarezandmarsal.com with any questions regarding the Scheme and related proceedings.

1 As previously reported, on July 15, 2020, 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 under the day-to-day control of its Board of Directors under the supervision of the Joint Provisional Liquidators.

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