Stock Alert: Luckin Coffee Plunges 50% After Filing For Bankruptcy In US

By RTTNews Staff Writer   ✉   | Published:

Shares of Luckin Coffee Inc. (LKNCY) are down more than 50% Friday morning after the China-based coffee chain filed for bankruptcy in the U.S.

The company filed for Chapter 15 bankruptcy protection that allows a foreign company to file for bankruptcy in the United States court system.

Luckin Coffee said "it is negotiating with its stakeholders regarding the restructuring of the Company's financial obligations, to strengthen the Company's balance sheet and enable it to emerge from the Cayman Proceeding as a going concern, for the benefit of all stakeholders."

The company said its outlets remain open for business.

LKNCY, currently at $6.25, has been trading in the range of $0.95- $43.18 in the last one year.

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