Luckin Coffee Finalized the Financing Obligation to its Share Holders
June 19 - 2021
Coffee Geography Magazine
Months old dispute between the troubled Luckin Coffee and its share holders is now settled under RSA.
Luckin Coffee Inc. headquartered in Beijing, China which is in provisional liquidation, has completed the financing commitment as settled under its restructuring support agreement (RSA) entered into with shareholders of the company to pay $460 million 0.75% convertible senior notes due in 2025.
According to the reached agreement, Luckin Coffee has to come up with clear assurance of funding outside China in an amount sufficient to deliver the settlement to holders of the notes under the RSA by June 14, 2021
The coffee company said it has completed government’s regulatory approval process, including obtaining relevant approvals from the State Administration of Foreign Exchange of the PRC through a designated PRC foreign exchange handling bank, to transfer such sufficient amount of funds out of the country through a planned capital reduction.
Luckin said completion of the approval process satisfies the financing obligation under the RSA.
As June 15, the holders of the notes who are party to the RSA collectively hold or control approximately 94% in aggregate principal amount of the notes.