How is Lucky Coffee now? Lucky Coffee filed for bankruptcy protection! Lucky: Good news!

Luckin Coffee came to "visit" Weibo to search again.

Luckin Coffee filed for bankruptcy protection under Chapter 15 of the US bankruptcy law in New York, according to Wall Street reports citing Bloomberg.

(Baidu Encyclopedia explained: "bankruptcy protection means that when the debtor voluntarily applies to the court or the creditors force the court for bankruptcy reorganization, regardless of whether the debtor is solvent or not, the debtor should put forward a bankruptcy reorganization plan and make arrangements for the time limit and manner of debt repayment, as well as possible derogation of the interests of some creditors and shareholders." )

According to media reports, Luckin Coffee (OTC:LKNCY) joint liquidators Alexander Lawson (Alexander Lawson) and King Tiffany (Wing Sze Tiffany Wong) submitted a verified petition to the United States bankruptcy Court for the Southern District of New York under Chapter 15 of title 11 of the United States Code (United States Code).

The petition seeks to recognize in the United States the provisional winding-up procedures and related remedies pending by Luckin Coffee in the Financial Services Department of the Grand Court of the Cayman Islands.

For the news, a person close to Luckin Coffee told the media: the operation is to create favorable conditions for the reorganization of the company. This person said that Luckin Coffee and the provisional liquidator (JPLs) filed for bankruptcy protection in New York in the United States in order to stop some legal procedures that are not conducive to the reorganization of the company, create favorable conditions for the completion of the reorganization of the company, and speed up the orderly reorganization.

In addition, Luckin Coffee also said: all stores in China are still open and provide services to customers, which is not expected to have a significant impact. At the same time, Luckin Coffee will continue to fulfill commercial obligations and pay fees to suppliers, real estate developers and employees.

On July 15 last year, the Grand Court of the Cayman Islands appointed Lawson of Alvarez & Marsal Cayman Islands Limited and Alvarez & Marsal Asia Limited as joint provisional liquidators of Luckin Coffee. At that time, Luckin Coffee issued a notice saying: according to his application, the Cayman Islands Court has appointed two employees of Alvarez & Marsal as "low-intervention" joint interim liquidators. However, they monitored Luckin Coffee's restructuring process with "low intervention". Luckin Coffee said that the appointment of a joint provisional liquidator would provide a stable platform for the company and its advisers to negotiate and restructure the company's debt. the appointment has no material impact on the company's day-to-day operations.

In response to the fact that Luckin Coffee filed for bankruptcy protection in the United States today, Luckin Coffee posted a message on the official Weibo saying:

In response to the online rumor # Luckin Coffee filed for bankruptcy protection in the United States #

Please don't be impatient, this is a misunderstanding!

In fact, this is good news, so that Lucky's road to rebirth goes a step further!

As an important step in the restructuring of the company and a common practice under the Cayman procedure, the provisional liquidator filed proceedings with the United States court to seek recognition by the United States court of the company's current interim winding-up procedure in the Cayman. The procedure will suspend legal proceedings against companies in the United States, creating conditions for the completion of the Cayman restructuring and completing the restructuring in an orderly manner.

The company and stores operate stably and operate normally, and will continue to provide consumers with high-quality, cost-effective products and services.

On the evening of January 6, 2021, the infighting among senior executives of Luckin Coffee caused a lot of sensation in the industry. for the joint removal of Chairman Guo Jinyi by a number of senior executives, there has been no further progress in Luckin Coffee so far.

With infighting and filing for bankruptcy protection, there is probably only time to know what the final outcome of Luckin Coffee will be.

* Photo Source: Luckin Coffee official website