Summary:
Crypto lender Celsius is seeking approval from creditors to sell its assets to the Fahrenheit consortium, with the aim of returning 67%-85% of holdings to creditors. The approval marks the final step in Celsius’ bankruptcy process, which has been ongoing for a year. The sale is part of a Chapter 11 procedure supervised by a New York Bankruptcy Judge. Creditors will be sent ballots to vote on the plan, which involves the sale of assets to a consortium including Arrington Capital and U.S. Bitcoin Corp. Returns for creditors could range from 67% to 85.6% depending on their involvement in Celsius’ Borrow Program. Other crypto bankruptcy plans have seen creditors vote in favor of restructuring plans.
Key Points:
1. Celsius is seeking approval from creditors to sell its assets to the Fahrenheit consortium.
2. The approval marks the final step in Celsius’ year-long bankruptcy process.
3. Creditors can expect to recover 67%-85% of their holdings.
4. The sale is part of a Chapter 11 procedure supervised by a New York Bankruptcy Judge.
5. Returns for creditors will be mainly in bitcoin and ether and could range from 67% to 85.6%.
Hot Take:
Celsius’ approval to sell its assets to the Fahrenheit consortium is a positive step towards recovering funds for creditors. The potential returns of 67%-85% offer hope for those affected by the bankruptcy. The involvement of Arrington Capital and U.S. Bitcoin Corp in the consortium adds credibility to the sale. However, uncertainties remain, as seen in other crypto bankruptcy cases where restructuring plans were favored by creditors but faced setbacks. It will be crucial for Celsius to navigate legal challenges and ensure a smooth process for returning funds to customers.
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