Luckin Coffee News: It requests for Bankruptcy in the US

Luckin Coffee News: It requests for Bankruptcy in the US

Luckin Coffee News

The Chinese coffee chain Luckin Coffee has filed an application in the courts to avail itself of the protection of Chapter 15 of the United States Bankruptcy Law while negotiating with its creditors the restructuring of its financial obligations, as announced by the company, which maintains all its establishments open to the public.”The relief requested in the Chapter 15 petition is an important component of the company’s restructuring and will facilitate the centralized management of the company’s assets to protect the interests of stakeholders,” the chain said.

Luckin Coffee agreed last December to pay 180 million dollars (150 million euros) to the United States Securities and Exchange Commission (SEC) to settle the case that the agency had opened against her for accounting fraud.

At least between April 2019 and January 2020, the Chinese firm falsified its accounts to inflate the sales data by 300 million dollars (250 million euros) through false transactions.

As part of this process, and since the accounting fraud became known, Luckin Coffee was expelled from the US Stock Exchange.

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