Celsius Network, a bankrupt crypto lender, is moving forward with its Chapter 11 restructuring plan and will file a disclosure statement on April 12 with information for claim holders to vote on the proposed plan.
Celsius Network, a cryptocurrency lending company, has recently made an announcement regarding its Chapter 11 restructuring plan. In a notice to its users on April 7, the debtors stated that they will file a disclosure statement on April 12. This statement will contain information on the proposed restructuring plan sponsored by NovaWulf, which includes the creation of a public platform called NewCo, fully owned by Earn creditors. The committee of unsecured creditors will appoint the majority of the firm’s board members, with no involvement from the Celsius founder.
This announcement comes after Celsius first presented the plan in February. The plan aims to provide adequate information for claim holders to vote on the proposed restructuring plan. The filing will include a summary of the plan, account-holder recovery percentages, frequently asked questions, and additional information on certain risk factors. The bankruptcy court is expected to conduct a hearing regarding approval of the disclosure statement on May 17, with a vote on the plan to follow.
The debtors’ statement regarding the plan stated that the April 12 filing will include 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. Celsius filed for Chapter 11 in July 2022, and its 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, the bankruptcy judge approved a settlement plan allowing Celsius custody account holders to get back 72.5% of their crypto. Despite the setback, Celsius has continued to operate its services and maintain its reputation in the cryptocurrency industry. The company has been actively working to ensure that its users’ investments are safe and secure.
The upcoming disclosure statement filing on April 12 is a significant milestone for Celsius Network, as it will provide much-needed clarity and information for claim holders. The restructuring plan proposed by NovaWulf aims to create a public platform that will be fully owned by Earn creditors, providing a fair and transparent solution for all parties involved. The bankruptcy court’s decision on the plan will be critical for the future of Celsius Network and its users.