How does Lu Zhengyao pay off his debts? Can Luckin Coffee still be listed? the number of stores in 2021

On the evening of 7 September, Luckin Coffee released the third report of the Joint Provisional Liquidator to the Grand Court of the Cayman Islands.

The report shows that the company's overall restructuring plan is moving forward in an orderly manner and has achieved a number of phased goals.

Luckin Coffee issued a statement on Sept. 2: the deadline has been extended to September 22 for the previously announced restructuring support Agreement (RSA), which submitted a petition to the Cayman court for approval of the RSA plan and instructions for convening a meeting of relevant creditors on the plan.

In fact, Luckin Coffee reissued the audited annual financial report for 2019 on June 30 this year, which means that Luckin Coffee is on the right track.

According to the disclosure requirements of the US Securities Regulatory Commission, Luckin Coffee will continue to actively fulfill the disclosure obligations, release the 2020 annual financial report as soon as possible, and gradually return to the normal progress of financial disclosure.

Not long ago, a number of media pointed out that Luckin Coffee turned losses into profits and achieved his annual profit target ahead of schedule and in excess. Luckin Coffee made an overall profit in May and June this year, with an amount of tens of millions of yuan, becoming the first profitable local coffee company.

What is worth paying attention to is that in the past few days, it has also been pointed out that two institutions have proposed to acquire a stake in Luckin Coffee.

The news was pointed out: it may be able to solve the turning point of the Lu Zhengyao family's overseas debt crisis.

According to people close to Lu Zhengyao's creditors, the investment company controlled by Wumart founder Zhang Wenzhong is participating in Luckin Coffee's debt restructuring, intending to package and acquire debt from Lu Zhengyao creditor companies such as CICC, Barclays and Morgan Stanley. And then through the "debt-to-equity" form curve into lucky.

According to media reports, the investment company controlled by Zhang Wenzhong had previously negotiated with KPMG, the "custodian liquidator" appointed by the British Virgin Islands court, but the negotiations were not smooth, so it turned to direct negotiations with creditors.

Another Chinese Hong Kong company, China Guangshi International Investment Co., Ltd., is also trying to acquire the aforementioned Luckin Coffee stake in the name of Lu Zhengyao's "related parties."

As soon as the news came out, it immediately triggered a heated discussion. But in this regard, Luckin Coffee responded that he did not know, and Wumart also responded that the news was not true.

Industry insiders said that this signal is to send a positive message to the outside world that Lu Zhengyao may complete the settlement of debts.

In addition to the Luckin Coffee scandal last year, Lu Zhengyao withdrew from Luckin Coffee after the shares of Luckin Coffee controlled by the Lu Zhengyao family through entities such as Haode were ordered by a British Virgin Islands court to be "trusteeship and liquidation" by KPMG on behalf of all creditors in July 2020.

According to the Interface News, if Zhang Wenzhong's investment company and Guangshi International can successfully "terminate the liquidation process" and buy Luckin Coffee's stake in the "escrow liquidation" at a high premium, Lu Zhengyao will not only be able to pay off more than 300 million US dollars in overseas debt, but may even get an additional sum of capital or retain part of Lucky's equity.

However, the news that the two institutions are interested in buying Lu Zhengyao's debt is not true.

In addition to the above-mentioned interested acquisitions by Zhang Wenzhong and Guangshi International, Sinaher Capital, the industrial capital investment platform of the five Star holding Group, also tried to invest in Luckin Coffee on August 10. this is the news of "financing" again since Luckin Coffee's delisting, but the lucky side's final response is that there are no financing arrangements in the near future.

As early as April 15, Luckin Coffee has received investment from Dawei Capital and pleasure Capital, raising up to 250 million US dollars.

To some extent, the enthusiasm of capital for Rui Xing is not only a re-choice of capital to believe in Rui Xing, but also an important part of Rui Xing's great cause of reconstruction.

Judging from the current development, Luckin Coffee seems to have gradually emerged from the scandal.

By the end of June this year, relevant data showed that the number of Luckin Coffee stores across the country had exceeded 5200, and the cumulative consumer users had exceeded 75 million. In drinks, this year's raw coconut series sold more than 10 million cups a month, setting a new sales record for Lucky's new products.

As we said before, the speed of the raw coconut latte comes out of the circle, which means that Luckin Coffee is back in the eyes of consumers.

Luckin Coffee also signed freestyle skiing world champion Gu Ailing (Eileen Gu) as the brand spokesman on September 3.

Now looking back on the whole development process of Luckin Coffee, it is still extremely magical.

From frantically subsidizing users to counterfeiting and delisting to resurrection to achieve overall profits, Luckin Coffee may have taken an unusual route, and since being caught up in the scandal, it can be said that Luckin Coffee has been turning around, and this turnaround war has also brought better development for Lucky.

At present, Luckin Coffee seems to have separated himself from the scandal. If the problem of debt restructuring can be solved as soon as possible, perhaps as the industry experts put it earlier: "after all, Luckin Coffee is a legal entity, and if all the responsible executives of the company are replaced in the future, and the company can produce sustained profit growth, or if there are new conditions for listing, it does not rule out its re-listing."

Last.

As for Luckin Coffee, can he turn around and go public again? There is a good chance that only time will know the answer.

* Image source: Internet

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