von Celsius Network to Make April 12 Filing
Celsius Network, a crypto lender, has announced that it will be moving forward on its Chapter 11 restructuring plan with a disclosure statement containing information for claim holders. The filing is set to take place on April 12 and will provide details of events leading up to Celsius‘ bankruptcy, projected recoveries for certain stakeholders should the restructuring plan be approved, and answers to frequently asked questions.
Overview of Plan
The proposed restructuring plan sponsored by NovaWulf proposes creating a public platform fully owned by Earn creditors called NewCo. The committee of unsecured creditors will appoint the majority of the firm’s board members, with no „Celsius founder involvement or relationship.“ Furthermore, the bankruptcy court is expected to conduct a hearing regarding approval of the disclosure statement on May 17th.
Asset Recovery Settlement Plan
Since filing for Chapter 11 in July 2022, Celsius‘ bankruptcy proceedings in court have included discussions on assets from the firm’s Earn program, crypto holdings, Bitmain coupons, and personal information of its users. In March 2021, the bankruptcy judge approved a settlement plan allowing Celsius custody account holders to get back 72.5% of their crypto.
Recent Developments with Tiffany Fong & FTX
Recently there was news about Tiffany Fong flaming Celsius along with FTX and NY Post’s Hall of Flame article. This created stir among cryptocurrency users worldwide resulting in more attention towards this case as well as increased scrutiny over existing policies for security measures taken by cryptocurrency companies such as Celsius Network.
Conclusion
Overall it looks like things are progressing in the right direction for Celsius Network and if everything goes according to plan then we could see them come out from under Chapter 11 soon enough!
