Celsius Bankruptcy

Celsius Network, a crypto lending platform, filed for Chapter 11 bankruptcy protection in July 2022. The company had been struggling to meet its financial obligations amid a broader sell-off in the cryptocurrency market.

As part of its bankruptcy filing, Celsius outlined a plan to sell its assets to a consortium of investors led by Arrington Capital and U.S. Bitcoin. The sale would allow Celsius to repay its creditors and exit bankruptcy.

On August 18, 2023, a U.S. bankruptcy judge approved Celsius’ disclosure statement, which provides creditors with information about the company’s assets, liabilities, and proposed restructuring plan. The judge also authorized Celsius to begin soliciting votes from creditors on the plan.

Voting will take place between August 24 and September 22, 2023. If the plan is approved by a majority of creditors, Celsius will be able to move forward with the sale of its assets and exit bankruptcy.

The plan has been met with mixed reactions from creditors. Some have expressed support for the plan, while others have criticized it as being unfair. The official committee of unsecured creditors, which represents the interests of creditors who are not guaranteed repayment, has not yet taken a position on the plan.

The outcome of the vote is uncertain. If the plan is approved, it would be a major step forward for Celsius in its efforts to exit bankruptcy. However, if the plan is rejected, it would leave the company in a difficult position.

Here are some of the key terms of the Celsius bankruptcy plan:

– Creditors would receive a recovery of between 67% and 85% of their holdings.

– The sale of assets would be conducted by a committee of independent experts.

– The proceeds from the sale would be used to repay creditors in full.

– Celsius would emerge from bankruptcy as a new entity owned by its creditors.

The Celsius bankruptcy plan is a complex and uncertain process. It is important for creditors to carefully review the plan and vote in accordance with their own interests.

See more updates on this news below: