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Over 95% of Celsius Creditors Vote to Accept Restructuring Plan
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Celsius, the bankrupt cryptocurrency lender, announced that more than 95% of creditors across all eligible classes have voted to accept the proposed restructuring plan. This overwhelming majority vote is seen as a testament to the collaborative efforts during Chapter 11 bankruptcy proceedings. However, the response to this announcement has been mixed, with many creditors asking when they will receive their money back.
According to a filing made on September 25, most creditor classes voted in favor of the plan by over 98%. The plan involves redistributing around $2 billion worth of Bitcoin and Ethereum to Celsius creditors. Additionally, a new company called “NewCo” will be created to manage the assets and further develop the debtors’ Bitcoin mining operations and stake Ethereum.
Despite the positive voting results, some creditors remain dissatisfied with the proceedings. One director expressed frustration, accusing Celsius of abusing clients and collaborating with friends while leaving creditors out of the room.
It’s important to note that Celsius filed for bankruptcy in July 2022 following the collapse of the Terra/Luna ecosystem. CEO Alex Mashinsky was arrested at that time for securities and wire fraud. A former executive, Roni Cohen-Pavon, recently pleaded guilty to charges and agreed to cooperate with investigators.
Overall, while the acceptance of the restructuring plan is a significant milestone for Celsius, it remains to be seen how satisfied creditors will be with the eventual outcome.
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Hot Take: A Mixed Response from Celsius Creditors
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The voting results reveal that most creditors have accepted Celsius’ restructuring plan, highlighting the collaborative efforts made during Chapter 11 bankruptcy proceedings. However, not all creditors are celebrating. Many are eager to know when they will receive their money back.
The proposed plan involves redistributing billions worth of Bitcoin and Ethereum to creditors and creating a new company, NewCo, to manage these assets. Despite these efforts, some creditors remain unimpressed and critical of the situation.
Celsius’ journey through bankruptcy has been tumultuous, with its CEO facing legal troubles and a collapse of its ecosystem. While the acceptance of the restructuring plan is a step forward, it remains to be seen how satisfied creditors will ultimately be with the outcome.
Owen Patter is a distinguished crypto analyst, accomplished researcher, and skilled editor, leaving a notable imprint on the cryptocurrency landscape. As a proficient crypto analyst and researcher, Owen delves into the intricate realms of digital assets, offering insights that resonate with a diverse audience. His analytical acuity is harmoniously paired with adept editorial skills, allowing him to transform complex crypto information into easily comprehensible content.