Chinese beverage chain Luckin Coffee on Monday announced that, pursuant to an order by the Grand Court of the Cayman Islands dated February 25, 2022, the firm’s winding up petition has been dismissed and the “light-touch” joint provisional liquidators of the company have been discharged from their duties, effective March 4, 2022, bringing the company’s provisional liquidation to a successful close.
According to the announcement, on March 4, 2022, the joint provisional liquidators filed a final report with the bankruptcy court and requested the entry of an order to close the Chapter 15 Case. This case will be closed following entry of the order in accordance with applicable bankruptcy procedures.
“The successful completion of the provisional liquidation is yet another positive step for Luckin Coffee, and has allowed us to significantly reduce our debt burden and improve the company’s capital structure. Operating from a position of financial strength, we are focused on executing our growth strategy and continuing to deliver industry-leading services and products to our customers and long-term value for our shareholders,” said Guo Jinyi, Chairman and Chief Executive Officer of Luckin Coffee.
Over the past year or so, Luckin Coffee has reached a settlement with United States Securities and Exchange Commission (SEC), and has signed a $178.5 million settlement letter of intent with the plaintiff’s representative in a U.S. class action lawsuit. Luckin Coffee also began to normally disclose financial reports.
As the problems caused by financial fraud are gradually resolved, Luckin Coffee is expected to open a new chapter in its development. On February 15, Guo revealed in an internal letter that the company’s annual performance in 2021 achieved steady growth. 113 new ready-made drink recipes were launched throughout the year. In January 2022, the total number of new stores opened by Luckin Coffee was about 360. During this year’s Spring Festival holiday in China, the transaction volume of Luckin Coffee was three times that of the same period last year.