In a significant development, Celsius, the bankrupt crypto lender, has submitted its bankruptcy restructuring plan to a vote by its creditors after receiving approval from the court. The plan involves selling Celsius’ assets to Fahrenheit Group, with creditors potentially receiving up to $2 billion in returns. Each creditor’s share would vary depending on their involvement with the Earn program or the Borrow program. If approved, the final decision on the settlement will be pronounced by the court in October, and disbursement will begin before the end of the year. However, customers have the option to opt-out if they are not comfortable with the arrangement. Overall, the plan is seen in a positive light by observers and crypto commentators, but the ultimate decision lies with the creditors.

Celsius Sends Bankruptcy Restructuring Plan to Creditors Vote After Court’s Approval

Celsius, the bankrupt crypto lender, is making progress towards a resolution as it prepares to hold a vote on its bankruptcy restructuring plan. This comes after the plan received approval from Judge Martin Glenn of the Southern District of New York Bankruptcy Court. The vote will determine whether the assets of Celsius will be sold to the Fahrenheit Group, a winning bidder that offered approximately $2 billion for the assets.

The creditors of Celsius will have the opportunity to vote on the proposal from August 24 to September 22. If the plan is approved, creditors could receive significant returns on their investments, with earn holders seeing returns of 67% and participants in the borrow program receiving returns of 85%.

Despite the approval of the restructuring plan by the court, the final decision on the settlement will still be made in October. However, the disbursement of funds will begin before the end of the year. It is important to note that customers who are not satisfied with the plan have the option to opt-out without participating.

The ruling by Judge Martin Glenn marks a significant milestone in the bankruptcy proceedings of Celsius. After a year-long case, creditors now have the opportunity to have their say on the future of the company and the potential returns they may receive.

Interim CEO Chris Ferraro’s Focus on Customer and Creditor Satisfaction

Chris Ferraro, the interim CEO of Celsius, has expressed a strong commitment to ensuring the best outcome for both customers and creditors. He believes that returning value to all parties involved is of utmost importance and remains laser-focused on achieving this goal. Ferraro’s dedication to customer and creditor satisfaction reflects Celsius’ determination to resolve the bankruptcy proceedings in a fair and equitable manner.

Fahrenheit Group’s Winning Bid for Celsius Assets

The Fahrenheit Group emerged as the winning bidder for Celsius assets with a generous offer of $2 billion. As part of the agreement, the assets will be distributed to Arrington Capital and other companies within the Fahrenheit consortium. The new company formed through this transaction is expected to receive approximately $500 million in funding. Additionally, the US Bitcoin Corp will be responsible for building new mining facilities, including a 100-megawatt plant.

The winning bid from the Fahrenheit Group signifies a positive outcome for Celsius and its creditors. The substantial investment will provide a significant boost to the new company’s resources, allowing for the expansion and development of mining facilities and other ventures.

Positive Perception of Restructuring Plan

The restructuring plan put forth by Celsius has been met with a positive reception from industry commentators and crypto enthusiasts. The plan offers the potential for high returns to creditors, which is a promising development considering the discounted assets resulting from Celsius’ bankruptcy.

Under the proposed plan, creditors will be paid in Bitcoin (BTC) and Ether (ETH), as well as equity shares in the new company. Additionally, the plan includes forfeitures from founder and ex-CEO Alex Machinsky to further compensate creditors. These provisions aim to provide a fair and comprehensive settlement for all parties involved.

Litigation Against Founder and Ex-CEO Alex Machinsky

Following the bankruptcy and subsequent asset takeover by the Fahrenheit Group, Celsius intends to proceed with litigation against its founder and ex-CEO, Alex Machinsky. Machinsky is accused of inflating the value of the company’s token and misleading investors. The pending litigation underscores Celsius’ commitment to accountability and ensuring that all parties responsible for any wrongdoing are held responsible.

Commitment of $50 Million to New Company by Fahrenheit

As part of the restructuring plan, the Fahrenheit Group has committed $50 million to the new company formed through the acquisition of Celsius assets. This significant investment demonstrates the Fahrenheit Group’s confidence in the future success of the new entity. It also provides valuable financial support that will contribute to the growth and development of the new company.

Listing the New Company on Nasdaq

In a move that highlights the aspirations of the new company, the Fahrenheit Group has announced plans to list it on the Nasdaq stock exchange. This decision reflects the company’s dedication to transparency and accountability. The listing on Nasdaq will provide shareholders and investors with increased visibility and opportunities for growth.

Deal Benefits for Creditors Despite Discounted Assets

Despite the discounted value of Celsius’ assets due to the bankruptcy, the restructuring plan offers substantial benefits to creditors. The potential returns of up to 67% for earn holders and 85% for those in the borrow program represent a significant opportunity for creditors to recoup their investments. The plan’s provisions for payment in Bitcoin and Ether, as well as equity shares in the new company, further enhance the overall value for creditors.

Background and Context

Overview of Celsius’ Bankruptcy Case

Celsius, a crypto lending platform, filed for bankruptcy last year after facing financial difficulties. The bankruptcy case has unfolded over the past year, with various parties involved in determining the best course of action for resolving the company’s financial obligations.

Celsius’ Desire for Acceptable Settlement in Bankruptcy Proceedings

Throughout the bankruptcy proceedings, Celsius has expressed a strong desire to achieve an acceptable settlement that would address the needs of both its customers and creditors. The company recognizes the importance of finding a resolution that is fair and equitable and is committed to working towards that goal.

Importance of the Restructuring Plan for All Parties Involved

The restructuring plan put forth by Celsius is crucial for all parties involved in the bankruptcy proceedings. Creditors stand to benefit from potential returns on their investments, while customers will have the opportunity to voice their opinions and potentially opt-out if they are not satisfied with the plan. The successful implementation of the restructuring plan will provide a much-needed resolution to the bankruptcy case and pave the way for a fresh start for Celsius and its stakeholders.

Vote on Asset Sale and Proposal

Celsius will hold a vote on the proposed asset sale to the Fahrenheit Group. Creditors will have the opportunity to cast their votes on the proposal from August 24 to September 22. The outcome of the vote will play a significant role in determining the future of Celsius’ assets and providing a path towards resolving the bankruptcy proceedings.

Potential Returns for Creditors

The restructuring plan offers the potential for attractive returns for creditors. Earn holders could receive returns of up to 67%, while participants in the borrow program may see returns as high as 85%. These returns provide a significant opportunity for creditors to recoup their investments and mitigate the financial impact of Celsius’ bankruptcy.

Timeline and Final Settlement Decision

The final decision on the settlement will ultimately be made by the court in October. This decision will mark a critical milestone in the bankruptcy proceedings and determine the disbursement of funds to creditors. While the court’s decision is pending, the disbursement of funds is expected to commence before the end of the year, providing some relief to creditors.

Customer Satisfaction and Opt-out Option

Celsius recognizes the importance of customer satisfaction and has provided an opt-out option for customers who are not satisfied with the restructuring plan. This option allows customers to choose whether or not to participate in the plan and ensures that their voices are heard. By offering this opt-out option, Celsius demonstrates its commitment to providing fair and transparent solutions for its customers.

Role of Judge Martin Glenn

Judge Martin Glenn of the Southern District of New York Bankruptcy Court played a pivotal role in the approval of Celsius’ restructuring plan. His ruling marks a significant milestone in the bankruptcy case and provides a framework for the resolution of creditor claims. Judge Glenn’s approval underscores the credibility and legitimacy of the restructuring plan.

CEO Chris Ferraro’s Focus

As the interim CEO of Celsius, Chris Ferraro is dedicated to ensuring the best outcome for both customers and creditors. He recognizes the importance of returning value to all parties involved and is laser-focused on achieving this goal. Ferraro’s commitment to customer and creditor satisfaction reflects the company’s determination to navigate the bankruptcy proceedings successfully.

Conclusion

The approval of Celsius’ bankruptcy restructuring plan marks a significant step towards resolving the company’s financial obligations. The upcoming vote by creditors and the final decision by the court will shape the future of Celsius’ assets and provide a path towards the disbursement of funds. The positive perception of the restructuring plan and the potential returns for creditors highlight the potential for a successful resolution to the bankruptcy case. With the commitment of CEO Chris Ferraro and the support of the Fahrenheit Group, Celsius is well-positioned to move forward and emerge stronger from the bankruptcy proceedings.