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News

Celsius Is To Hold A Meeting On August 25 To Discuss New Bankruptcy Plans

August 23, 2023 - Around 2 mins mins to read

Key Points:

  • The committee plans a discussion on restructuring; advisors will answer queries.
  • A judge approves Celsius’s disclosure; voting on an asset sale is in progress.
  • The crypto lender launches a creditor-owned firm for $2 billion in Bitcoin, Ethereum distribution and faces challenges.
The Official Committee of Celsius Unsecured Creditors has announced an upcoming staff meeting slated for August 25th at X Spaces.
Celsius Is To Hold A Meeting On August 25 To Discuss New Bankruptcy Plans

The primary agenda will revolve around discussions regarding the proposed restructuring plan and disclosure statement. Attendees can anticipate the committee and its advisors being present to address queries and concerns.

Recent developments indicate positive progress for Celsius, as a judge greenlit the company’s disclosure statement last week. Under the Chapter 11 process, Celsius’s Interim CEO, Chris Ferraro, expressed dedication to achieving optimal outcomes for clients and creditors.

The proposed plan involves transferring assets to the Fahrenheit consortium, and potential returns diverge.

Earn account holders might expect around 67% returns, while Celsius lending program participants, mainly in Bitcoin (BTC) and Ethereum (ETH), could see returns as high as 85.6%. However, asset liquidation offers a less substantial 47% return.

Previously, the bankrupt crypto lending platform initiated a new company owned by creditors. This venture aims to distribute approximately $2 billion in Bitcoin and Ethereum. Permission from the bankruptcy court has paved the way for customer voting on this proposal.

The plan envisions customer returns through equity in this company, tasked with managing Celsius’ mining operations, institutional loans, private equity investments, venture capital investments, and $500 million in liquid cryptocurrency investments.

Despite progress, some customers’ opposition and creditors’ potential challenges against Celsius’ repayment plan loom. The court is scheduled to evaluate plan approval in October.

Celsius has strategically partnered with PayPal as a potential agent for specific distributions to individual US creditors, underscoring the company’s commitment to efficient management.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

Celsius Is To Hold A Meeting On August 25 To Discuss New Bankruptcy Plans

Key Points:

  • The committee plans a discussion on restructuring; advisors will answer queries.
  • A judge approves Celsius’s disclosure; voting on an asset sale is in progress.
  • The crypto lender launches a creditor-owned firm for $2 billion in Bitcoin, Ethereum distribution and faces challenges.
The Official Committee of Celsius Unsecured Creditors has announced an upcoming staff meeting slated for August 25th at X Spaces.
Celsius Is To Hold A Meeting On August 25 To Discuss New Bankruptcy Plans

The primary agenda will revolve around discussions regarding the proposed restructuring plan and disclosure statement. Attendees can anticipate the committee and its advisors being present to address queries and concerns.

Recent developments indicate positive progress for Celsius, as a judge greenlit the company’s disclosure statement last week. Under the Chapter 11 process, Celsius’s Interim CEO, Chris Ferraro, expressed dedication to achieving optimal outcomes for clients and creditors.

The proposed plan involves transferring assets to the Fahrenheit consortium, and potential returns diverge.

Earn account holders might expect around 67% returns, while Celsius lending program participants, mainly in Bitcoin (BTC) and Ethereum (ETH), could see returns as high as 85.6%. However, asset liquidation offers a less substantial 47% return.

Previously, the bankrupt crypto lending platform initiated a new company owned by creditors. This venture aims to distribute approximately $2 billion in Bitcoin and Ethereum. Permission from the bankruptcy court has paved the way for customer voting on this proposal.

The plan envisions customer returns through equity in this company, tasked with managing Celsius’ mining operations, institutional loans, private equity investments, venture capital investments, and $500 million in liquid cryptocurrency investments.

Despite progress, some customers’ opposition and creditors’ potential challenges against Celsius’ repayment plan loom. The court is scheduled to evaluate plan approval in October.

Celsius has strategically partnered with PayPal as a potential agent for specific distributions to individual US creditors, underscoring the company’s commitment to efficient management.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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