Luckin Coffee Proceed With Chapter 15 Case in The United
States
Feb 12, 2021
Coordination
between the Cayman Court and the U.S. Bankruptcy Court to Protect the Interests
of Stakeholders and Facilitate Luckin Coffee's Restructuring of its Financial
Obligations
All Company
Stores Remain Open and Serving Customers in China; No Material Impact on Daily
Operations Expected
Company
Continues to Meet Trade Obligations in the Ordinary Course of Business,
Including Paying Suppliers, Vendors and Employees
Luckin Coffee is negotiating with its stakeholders
regarding the restructuring of the Company's financial obligations, to
strengthen the Company's balance sheet and enable it to emerge from the Cayman
Proceeding as a going concern, for the benefit of all stakeholders. The relief
sought in the Chapter 15 Petition is an important component of the Company's
restructuring. This relief will promote centralized administration of the
Company's assets by permitting coordination between the Cayman Court and the
U.S. Bankruptcy Court, to protect the interests of stakeholders while
facilitating the Company's restructuring.
The Joint Provisional Liquidators of Luckin Coffee Inc.,
Alexander Lawson of Alvarez & Marsal Cayman Islands Limited and Wing Sze
Tiffany Wong of Alvarez & Marsal Asia Limited, today filed a verified
petition under chapter 15 of title 11 of the United States Code (the
"Chapter 15 Petition") with the United States Bankruptcy Court for
the Southern District of New York (the "U.S. Bankruptcy Court"). The
Chapter 15 Petition seeks, among other things, recognition in the United States
of the Company's provisional liquidation pending before the Grand Court of the
Cayman Islands (the "Cayman Court"), Financial Services Division,
Cause No. 157 of 2020 (ASCJ) (the "Cayman Proceeding") and related
relief.
All Company stores remain open for business, offering
products with high quality, affordability and convenience to its customers in
China. The filing of the Chapter 15 Petition is not expected to materially
impact the Company's day-to-day operations. The Company continues to meet its
trade obligations in the ordinary course of business, including paying
suppliers, vendors and employees.
Luckin Coffee Inchas pioneered a technology-driven retail network to provide coffee and other products of high quality, high affordability, and high convenience to customers. Empowered by big data analytics, AI, and proprietary technologies, the Company pursues its mission to be part of everyone's everyday life, starting with coffee. The Company was founded in 2017 and is based in China.