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Tuesday, 23 Jun 2020 04:00 pm

Luckin Coffee picks Houlihan Lokey for financial, strategic advice: sources

The lenders are seeking to recover about $324 million of outstanding debt, according to a Cayman Islands court filing.

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Luckin Coffee has picked investment bank Houlihan Lokey as an adviser, according to sources close to the matter, following an accounting scandal that has seen the Chinese coffee chain’s shares plummet and creditors pursue assets held by the firm’s family.

Houlihan Lokey’s remit will be to provide financial and strategic advice, one source said.

A Cayman Islands court last week granted lenders, led by Credit Suisse, a court order to wind up Primus Investments Fund and Mayer Investments Fund, entities holding shares in Luckin Coffee and ultimately controlled by the family of the coffee firm’s Chairman Charles Zhengyao Lu.

The lenders are seeking to recover about $324 million of outstanding debt, according to a Cayman Islands court filing.

Luckin’s fortunes have crashed since an internal probe showed much of its 2019 sales was fabricated and overestimated by 2.2 billion yuan ($311.31 million).

Houlihan Lokey has experience with advising other companies in financial distress. It was last week appointed by troubled German tech firm Wirecard to assess its options and is advising the founder of United Arab Emirates-based hospital operator NMC Health.

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Tags Luckin Coffee Financial Loan British Virgin Islands Charles Zhengyao Lu China Bank Houlihan Lokey

Neha Pandey

Aware of her elements, Neha writes the best articles across industries including electronics & semiconductors, automotive & transportation and food & beverages. Being from the finance background she has the ability to understand the dynamics of every industry and analyze the news updates to form insightful articles. Neha is an energetic person interested in music, travel, and entertainment. Since past 5 years, she written extensively on sectors like technology, finance and healthcare.


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