The following session took place during Annual Spring Meeting in April 2023. Luckin Coffee Inc., founded in 2017 by a Chinese entrepreneur, had the goal of outgrowing Starbucks as China’s largest coffee chain. The company’s 2019 IPO and bond offering raised approximately US$900 million. However, in February 2020, it was discovered that Luckin had fabricated its financial statements, with revenue overstated by US$300 million. Litigation followed, with various direct and class action claims being asserted in the U.S., a class action claim in Canada, and injunctive proceedings in both the Cayman Islands and Hong Kong. The principal creditors were unsecured bondholders and equityholders with securities litigation claims. In order to protect Luckin from its creditors, restructuring officers were appointed in the Cayman Islands, and the company’s debt was successfully restructured. This international panel of experts will discuss the case and lessons restructuring professionals can learn from it. All sessions from this conference can be accessed at https://cle.abi.org/.
Materials are available here.
Speakers:
Hamid Khanbhai
Campbells Grand Cayman | Cayman Islands
Nicosia Lawson
Baker & Partners | Grand Cayman, Cayman Islands
Wei-Yang Lim
Kirkland & Ellis | Hong Kong
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