Luckin Coffee Goes Bankrupt With Chapter 15 Filing
Delisted from American stock exchanges during the summer of 2020 and racked with corruption scandals involving its succession of CEOs, Chinese coffee company Luckin Coffee (OTC: LKNC.Y) made the headlines yet again today, this time by filing for Chapter 15 bankruptcy. The Associated Press reports the company will keep its physical locations open during the bankruptcy process as it seeks to restructure itself into a viable business.
Luckin filed for Chapter 15 bankruptcy because this is the type available for foreign companies operating in the United States. A little more than a month ago, the company agreed to pay a $180 million fine after the U.S. Securities and Exchange Commission (SEC) accused it of allegedly adding $300 million in nonexistent sales to its balance sheet in 2019 and into early 2020. The company, also fined by the Chinese government, agreed to pay the SEC fine without admitting to the charges.
Source Fool.com
