26 October 2021
Gall is working together with Carey Olsen and Quinn Emanuel Urquhart & Sullivan to advise an Ad Hoc Group of bondholders (“AHG”) in relation to an offshore scheme of arrangement in the ongoing restructuring of Luckin Coffee Inc (“Luckin Coffee”) in Cayman.
AHG members hold the majority of the US$460 million convertible senior notes that Luckin Coffee issued in January 2020 (due 2025) and entered into a restructuring support agreement (“RSA”) with the Mainland China coffee chain. Liquidators are overseeing the corporate restructuring, acting as ‘light touch’ provisional liquidators under a Cayman Islands court order.
Founded in 2017 and listed on the Nasdaq in June 2019, Luckin Coffee announced the discovery of a significant internal fraud in April 2020.
In May 2020, Gall obtained a Mareva and proprietary injunction for the AHG against Luckin Coffee and its associated companies in Hong Kong to prevent the dissipation of assets after discovery of the fraud.