Monday 27 June 2022

Luckin Coffee announces successful conclusion of provisional liquidation

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BEIJING, China – Luckin Coffee Inc. (“Luckin Coffee” or the “Company”) (OTC: LKNCY) today announced that pursuant to an order of the Grand Court of the Cayman Islands dated February 25, 2022 (the “Discharge Order”), the winding up petition (as amended) in respect of the Company has been dismissed and the “light-touch” joint provisional liquidators (“Joint Provisional Liquidators”) of the Company have been discharged from their duties effective on March 4, 2022, bringing the Company’s provisional liquidation to a successful close.

“Today’s announcement is the result of the remarkable work from the Luckin Coffee team and the outstanding support we have received from our creditors and stakeholders throughout this process,” said Dr. Jinyi Guo, Chairman and Chief Executive Officer of Luckin Coffee.

“The successful completion of the provisional liquidation is yet another positive step for Luckin Coffee, and has allowed us to significantly reduce our debt burden and improve the Company’s capital structure. Operating from a position of financial strength, we are focused on executing our growth strategy and continuing to deliver industry-leading services and products to our customers and long-term value for our shareholders.”

The Discharge Order was made following a consensual application by the relevant parties, and after the Company’s previously announced successful restructuring of its US$460 million 0.75% Convertible Senior Notes due 2025 by way of a scheme of arrangement (the “Scheme”) in the Cayman Islands. As previously announced, the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”) recognized and enforced the Scheme in the United States pursuant to chapter 15 (“Chapter 15”) of title 11 of the United States Code (the “Bankruptcy Code”).1

On March 4, 2022, the Joint Provisional Liquidators filed a final report with the Bankruptcy Court and requested the entry of an order to close the Chapter 15 Case. The Chapter 15 Case will be closed following entry of this order in accordance with applicable bankruptcy procedures.

Additional Information

Mr. Alexander Lawson of Alvarez & Marsal Cayman Islands Limited and Ms. Wing Sze Tiffany Wong of Alvarez & Marsal Asia Limited have served as the Company’s Joint Provisional Liquidators since July 15, 2020. 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. The Joint Provisional Liquidators are represented by DLA Piper LLP (US) in the United States and Campbells LLP in the Cayman Islands. Holders of Existing Notes may contact Houlihan Lokey at or the Joint Provisional Liquidators at with any questions regarding the Scheme and related proceedings.

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