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.