Luckin Coffee foreign representatives seek Chapter 15 case closure

By Sarah Lizee

Olympia, Wash., March 4 – Luckin Coffee Inc.’s foreign representatives asked the U.S. Bankruptcy Court for the Southern District of New York to close the company’s Chapter 15 case, according to a motion filed Friday.

As previously reported, the company announced that, with the support of its joint provisional liquidators, the restructuring of the $460 million 0.75% convertible senior notes due 2025 under its previously announced scheme of arrangement has become effective.

In total, the company has issued scheme consideration of $245.5 million of cash, $109.9 million of 9% series B senior secured notes due 2027 and 9.24 million American Depositary Shares representing 73.89 million class A ordinary shares.

The new notes now represent the company’s only offshore debt securities.

The occurrence of the restructuring effective date followed unanimous approval of the scheme by the voting holders of the existing notes, sanction of the scheme in the Cayman Islands and recognition and enforcement of the scheme in the United States, each of which was uncontested, the company said.

The coffee chain is based in Beijing. The company filed Chapter 15 bankruptcy on Feb. 5, 2021 under case number 21-10228.

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