Luckin Coffee (OTC:LKNCY) announced on February 8 that its previous settlement agreement with the SEC was approved by the court of the Southern District of New York on February 4, agreeing to pay a civil penalty of $180 million to the SEC.
All of the company's stores continue to operate at this time, offering high quality, affordable and convenient products to customers in China, Luckin Coffee said, adding that it will continue to meet its trade obligations in the normal course of business, including making appropriate payments to suppliers, vendors and employees.
In addition, Luckin Coffee filed for Chapter 11 bankruptcy protection in the Bankruptcy Court for the Southern District of New York on February 5.
Luckin Coffee stated at the time that it was in negotiations with stakeholders to restructure the company's financial obligations in order to strengthen the company's balance sheet and enable it to emerge from the liquidation process as a going concern for the benefit of all stakeholders.
On December 16, 2020, Luckin Coffee issued an announcement that it had reached a settlement with the SEC in connection with an investigation into fabricated transactions perpetrated by certain former executives and employees of the company, adding that the settlement was subject to approval by the Court for the Southern District of New York.
Luckin Coffee files for Chapter 15 bankruptcy protection in New York
