Luckin Coffee Inc (LKNCY)

[CycleTrade]

Those 3 options given in the filing are not good for current shareholders. IMO.

Even if they were to remain a going concern and get the financing that they need...THE BEST SCENARIO I can see right now is Dilution to current Shareholders. THE WORST SCENARIO...Liquidate, pay the bondholders, start over. Go back to the exchange once they have all of the debt and other obligations taken care of and start with a New Listing. Come Public a Second Time.

The thing that I see (through the weeds) in reading this filing, they are starting to get hounded by these other claimants. There's a Pension Fund in there and a whole bunch of other lawsuits that were filed in May and June. Since they can't get the Cayman stuff taken care of, they can't get the other lawsuits taken care of and the SEC.

It's a MAJOR CLUSTER!!!

So that is why they HAD TO GO CHAPTER 15/11. They had no resolution and the clock was ticking. It was a pre-emptive move to give them one last gasp at a resolution with the Cayman Court. They need the Cayman Court to allow the transfer of funds to take care of the claimants.

Could it happen...Yes it could. But now it's a Hope and a Prayer. I'm not willing to sit around for that. Even if they get it all sorted out and pay everyone off, they are still going to NEED CASH! That means either one of two things....More Debt (start the merry-go-round all over again) or issue more shares (Dilution to existing shareholders)...and then there is the equation of TIME VALUE OF MONEY....How long will it take? Your Capital could be tied up for months.

Not appealing to me.....