Vending

Luckin Coffee announces restructuring plan

Photo courtesy of Luckin Coffee.

March 18, 2021

China based Luckin Coffee Inc., a pioneer in self-service coffee machines in addition to being a coffee shop chain, has entered into a restructuring support agreement with holders of a majority of its $460 million convertible senior notes due 2025, according to a press release. The company filed for Chapter 15 bankruptcy protection in New York in February.

The holders of existing notes who are party to the "restricted group" collectively hold or control approximately 59% in aggregate principal amount of the notes. The company will seek support for the RSA from additional holders of the notes.

The restructuring is expected to provide recovery to the holders of the notes in the amount of approximately 91%-96% of par value.

"We will continue to take action to strengthen our capital structure while delivering outstanding products and services for our customers." Dr. Jinyi Guo, chairman and CEO, said in the press release.

All Luckin Coffee stores remain open for business in China.