March 28, 2024

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Business is my step

UPDATE 2-China’s Luckin Coffee seeks U.S. Chapter 15 individual bankruptcy security

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(Adds particulars, history)

Feb 5 (Reuters) – China’s Luckin Espresso Inc, whose explosive development was derailed previous year by accounting fraud, reported on Friday it is in search of defense below Chapter 15 of the U.S. Bankruptcy Code.

The espresso chain explained refini.television/3rpAQMe the Chapter 15 petition, which would facilitate the restructuring of its debts, is not expected to materially impression its working day-to-working day operations, and that its outlets remain open up.

Chapter 15 bankruptcy enables a international debtor to shield belongings in the United States.

Xiamen-based Luckin had positioned by itself as an bold house-grown challenger to U.S. espresso huge Starbucks Corp , but explained very last April that as a lot as 2.2 billion yuan ($340 million) in 2019 gross sales experienced been fabricated.

Luckin delisted from Nasdaq at the stop of June very last yr following admitting to accounting fraud.

In December, it agreed to pay the U.S. Securities and Commission a $180 million penalty to settle accounting fraud rates for “intentionally and materially” overstating its 2019 profits and understating a net reduction.

The corporation explained that it continues to satisfy its ongoing business enterprise obligations and is shelling out suppliers and team.

$1 = 6.4691 Chinese yuan renminbi Reporting by Bhargav Acharya in Bengaluru and Tony Munroe in Beijing Enhancing by Bernard Orr and Jason Neely

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