Despite the challenges faced by Celsius, the recent approval of their bankruptcy plan has brought relief to creditors. With court confirmation and creditor approval in place, the plan outlines the reimbursement and provision of shares to creditors, with funds expected to be distributed by year-end.
A new company, NewCo, has been established as part of the plan, aimed at expanding mining operations and monetizing illiquid assets. This development signifies a positive step forward for the participants in the Earn program and demonstrates the commitment to addressing creditors’ concerns.
Key Takeaways
- Court confirmation and creditor approval obtained for Celsius bankruptcy plan
- Approximately $2 billion in Bitcoin and Ether redistributed to creditors
- Creditors provided with equity in NewCo
- NewCo oversees expansion of mining operations and monetization of illiquid assets
Approval and Implementation
The approval and implementation of the bankruptcy plan for Celsius has brought relief to creditors. Following the court’s confirmation of the bankruptcy plan and the approval by Celsius creditors on September 27, reimbursement and shares have been provided to the creditors.
Additionally, a new company called NewCo has been created. Creditors can expect reimbursement by the end of the year. Approximately $2 billion in Bitcoin (BTC) and Ether (ETH) has been redistributed to Celsius creditors, along with equity in NewCo. Participants in the Earn program have also been included as creditors. No findings on securities laws or the Earn Program have been reported.
NewCo will focus on expanding existing mining operations, monetizing illiquid Celsius assets, and undertaking other developmental activities, subject to regulatory approval. It will be managed by the Fahrenheit consortium, which includes crypto-native individuals and organizations, such as the Proof Group.
Redistribution of Funds
Following the approval and implementation of the bankruptcy plan for Celsius, a substantial amount of funds, approximately $2 billion in Bitcoin (BTC) and Ether (ETH), has been redistributed to the creditors. The redistribution of funds aims to reimburse the creditors for their losses incurred due to Celsius’ bankruptcy. In addition to the cryptocurrency funds, creditors have also been provided with equity in the newly formed company, NewCo. This ensures that the creditors not only receive a portion of the recovered assets but also have a stake in the future success of the company. Moreover, participants in the Earn program, which allows users to earn interest on their crypto holdings, have been included as creditors and will also benefit from the redistribution of funds. The redistribution of funds signifies a step towards resolving the financial obligations of Celsius and provides some relief to the creditors.
| Funds | Redistributed to | Equity in NewCo | Participants in Earn Program |
|---|---|---|---|
| $2 billion (BTC/ETH) | Celsius creditors | Yes | Yes |
Operations of NewCo
NewCo, the newly formed company resulting from the bankruptcy plan approval of Celsius, will oversee the expansion of existing mining operations, monetization of illiquid assets, and other planned developmental activities.
The objective of NewCo is to maximize the value of Celsius’s assets and generate revenue to reimburse the creditors.
The expansion of existing mining operations aims to capitalize on the growing demand for cryptocurrencies, particularly Bitcoin and Ether.
Additionally, NewCo will focus on the monetization of illiquid assets, which could involve selling off non-performing assets or exploring alternative strategies to generate liquidity.
These planned developmental activities will be subject to regulatory approval, ensuring compliance with applicable laws and regulations.
NewCo will be managed by the Fahrenheit consortium, which comprises crypto-native individuals and organizations, bringing expertise and industry knowledge to the operations.
Conclusion
In the wake of the Celsius bankruptcy plan’s approval, creditors find solace as they anticipate the reimbursement of funds and equity in NewCo. This plan, backed by the Fahrenheit consortium, seeks to expand mining operations, monetize illiquid assets, and pursue developmental endeavors.
The involvement of Proof Group, a consortium member bidding for FTX, adds another layer of interest to the unfolding legal developments surrounding Celsius.
As the dust settles, creditors can look forward to a brighter future ahead.
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