China’s Luckin Coffee Inc., a coffeehouse chain and provider of self-service coffee equipment, said it has entered into a restructuring support agreement with holders of a majority of its $460 million convertible senior notes due 2025.
The coffee retail giant filed for Chapter 15 bankruptcy protection in New York in February amid an accounting scandal.
According to a press release, noteholders are expected to receive approximately 91-96% of the par value of the existing notes.
“We have a new leadership team and a viable plan to return Luckin Coffee to growth and value creation,” said Dr. Jinyi Guo, chairman and chief executive of Luckin Coffee. “We will continue to take action to strengthen our capital structure while delivering outstanding products and services for our customers.”
All Luckin Coffee stores remain open for business in the People’s Republic of China.