Ruixing Coffee appoints a temporary liquidator, which is not expected to substantially affect daily operations
Morning news on July 16, Beijing time, Ruixing Coffee announced that it had appointed Alexander Lawson of Alvarez & Marsal Cayman Islands Ltd. and Wing Sze Tiffany Wong of Alvarez & Marsal Asia Ltd. As the”low-level intervention” joint temporary liquidator of Ruixing Coffee, it will monitor the restructuring process of Ruixing Coffee in the form of”low-level intervention”.
Ruixing Coffee said that the appointment of a joint interim liquidator will provide a stable platform for the company and its consultants to negotiate and implement restructuring of the company’s debt. It is worth noting that Ruixing Coffee believes that this has no substantial impact on the company’s daily operations.
As of June 30, 2020, Ruixing Coffee’s preliminary unaudited cash and cash equivalents (excluding restricted cash and illiquid short-term investments) are estimated to be approximately US$780 million.
According to the law, the appointment of a temporary liquidator can automatically put all legal proceedings currently facing Ruixing Coffee into a suspension phase. Industry analysts believe that the debt restructuring of enterprises in this form can ensure that under the supervision of the court, the original management team of the enterprise continues to carry out daily operations and maintain normal business operations. Ruixing Coffee can therefore get a certain amount of breathing time for negotiating a reorganization plan with various stakeholders without worrying about and handling malicious litigation by some creditors.
SourceBeijing DailyClient| Reporter Yuan Lu
Process Editor:Wang Mengying