Beijing-based Luckin Coffee Inc., which is in provisional liquidation, announced that it has completed the financing milestone as contemplated under its restructuring support agreement (RSA) entered into with holders of company's $460 million 0.75% convertible senior notes due in 2025.
As previously announced, the RSA requires the company to obtain reasonable assurance of funding outside of the People’s Republic of China in an amount sufficient to satisfy the cash consideration to be distributed to the holders of the notes under the RSA by June 14, 2021
The coffee company said it has completed the PRC regulatory approval process, including obtaining relevant approvals from the State Administration of Foreign Exchange of the PRC through a designated PRC foreign exchange handling bank, to transfer such sufficient amount of funds out of the PRC through a planned capital reduction.
Luckin said completion of the approval process satisfies the financing milestone under the RSA.
As June 15, the holders of the notes who are party to the RSA collectively hold or control approximately 94% in aggregate principal amount of the notes.