Thursday 07 July 2022

Luckin Coffee successfully completes restructuring of its financial indebtedness

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BEIJING, China – Luckin Coffee Inc. announced yesterday the successful completion of the restructuring of its financial indebtedness and its emergence from the bankruptcy proceeding commenced with respect to the Company as debtor under chapter 15 of title 11 of the United States Code (the “Chapter 15 Case”).

“Today marks a new beginning for Luckin Coffee,” said Dr. Jinyi Guo, Chairman and Chief Executive Officer of the Company. “Luckin Coffee utilized the Chapter 15 process to effectuate the restructuring of its financial indebtedness in the United States. As we have emerged from this process successfully with the support of our creditors, we are confident that Luckin Coffee is well positioned for long term growth and creation of stakeholder value.”

Dr. Guo continued, “We are thankful to all of our stakeholders for helping us achieve this positive outcome and become a stronger company. In particular, I would like to express my sincere gratitude to our leadership and management team for their unwavering commitment, even during challenging times, and to our employees and retail partners for their hard work and dedication. We will endeavor to continuously enhance our governance and internal controls and improve our product and service offerings.”

As previously announced, a final report was filed with the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”) on March 4, 2022 requesting the entry of an order to close the Chapter 15 Case.

As detailed in the final report, the Company previously obtained recognition and enforcement of its Cayman Islands scheme of arrangement under chapter 15 of title 11 of the United States Code and successfully restructured its financial indebtedness pursuant to such scheme.¹

No objections were filed to the motion to close the Chapter 15 Case, and the Bankruptcy Court entered an order granting this request on April 8, 2022.

The entry of the Bankruptcy Court’s order marks the formal closure of the Company’s U.S. bankruptcy proceedings. As previously announced, the winding up petition (as amended) in respect of the Company has been dismissed and the Company’s provisional liquidation proceedings were also brought to a successful close pursuant to an order of the Grand Court of the Cayman Islands dated February 25, 2022. Accordingly, the Company is no longer subject to bankruptcy or insolvency proceedings in any jurisdiction.

¹ The Bankruptcy Court recognized and gave full force and effect to the Company’s scheme of arrangement in the territorial jurisdiction of the United States on December 17, 2021. The Bankruptcy Court previously recognized and gave full force and effect to the Company’s Cayman Islands provisional liquidation in the territorial jurisdiction of the United States on March 30, 2021.

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