Bankrupt Celsius Network Aims to Repay Creditors with Crypto Assets
Celsius Network, a bankrupt digital asset lender, has submitted a restructuring plan to a US bankruptcy court. The plan outlines the intention to generate funds for a new corporate spinoff called “NewCo” and repay customers. The filing states that at least $2.03 billion worth of cryptocurrency will be distributed to creditors, depending on market fluctuations, after the plan becomes effective. NewCo will be owned by customers but managed by Fahrenheit LLC, a group of companies focusing on Bitcoin mining and staking. The goal is to list NewCo as a publicly traded company on NASDAQ, with $450 million in crypto for seed funding and $50 million from Fahrenheit for an equity stake.
Creditors Could Receive Lost Funds Before the Year Ends
If approved, customers could start receiving their lost funds from Celsius before the end of 2023. Celsius creditors managing an account on X social media platform have shared this information with their followers. The restructuring plan offers two options: NewCo and orderly wind-down (OWD). Most classes have voted in favor of the plan.
Hot Take: Celsius Strives to Repay Creditors with Crypto Assets
Bankrupt digital asset lender Celsius Network aims to repay its creditors by distributing over $2 billion worth of cryptocurrency. With a restructuring plan presented to a US bankruptcy court, Celsius plans to create a new corporate spinoff called “NewCo.” This entity will be owned by customers but managed by Fahrenheit LLC, focusing on Bitcoin mining and staking. If approved, customers may start receiving their lost funds before the year ends. This move demonstrates Celsius’ commitment to repaying its creditors and recovering from its financial difficulties.
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