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Luckin pays $180 million penalty after US court ruling

Luckin Coffee announced Friday that it has paid the $180 million civil penalty agreed to as part of a settlement plan it reached with the US Securities and Exchange Commission (SEC) in December. On February 3, the SEC acknowledged in a notice to the Southern District of New York that Luckin Coffee had satisfied the penalty provisions by making cash payments to the company’s security holders. The US court had ordered the China-based company to pay the civil penalty after it found that Luckin had defrauded investors by inflating its revenues by around $310 million in 2019. [Luckin press release]

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US court approves Luckin Coffee’s $460 million debt restructuring plan

A US federal judge in Manhattan has passed Luckin Coffee’s debt restructuring plan for a $460 million bond due 2025. Court documents show that noteholders will get $320 million in cash and new debt. Luckin announced Tuesday that the plan has already won approval from creditors and the grand court of Cayman Islands, where it registered. US court approval means the plan can be implemented in the US. [Bloomberg Law]