Luckin Coffee: The effective date of the overseas debt restructuring plan has been reached

On the evening of January 31, Luckin Coffee issued an announcement announcing that with the support of the joint provisional liquidators, the overseas debt restructuring plan has been basically completed. The effective date of the reorganization has been reached.

The debt restructuring plan is designed to manage the restructuring of $460 million of convertible senior notes with an annual interest rate of 0.75% due in 2025. At the same time, the parties are expected to jointly apply to the Cayman Court as soon as reasonably practicable to withdraw or revoke the liquidation application previously submitted, and the joint provisional liquidators will thus step down.

Luckin Coffee disclosed in the announcement that as consideration for the debt restructuring plan, the Company paid a total of $245.5 million in cash, an annual interest rate of $9.00% in the total amount of $109.9 million, Series B Premium Guaranteed Notes due 2027, and 9,235,902 American Depositary Receipts (representing 73,887,216 Class A common shares).

Moreover, before the effective date of the debt restructuring plan was reached, the unanimous consent of the voting holders of the existing bills, the formal approval of the Cayman Islands courts, and the recognition and enforcement of the US courts, the above steps were not opposed. For Luckin Coffee, this means that its overseas debt restructuring is about to be completed, and Luckin Coffee will withdraw from the liquidation process and end the liquidation state for more than a year.