Luckin Coffee’s Chapter 15 bankruptcy case closed by court

By Sarah Lizee

Olympia, Wash., April 8 – Luckin Coffee Inc.’s Chapter 15 bankruptcy case was closed Friday by the U.S. Bankruptcy Court for the Southern District of New York, according to an order.

As previously reported, the company’s foreign representatives sought the case closure after the restructuring of the $460 million 0.75% convertible senior notes due 2025 under a scheme of arrangement became effective.

The company issued a 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 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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