2023-10-04 05:34:57
“Crypto lender Celsius will repay its creditors $2.03 billion, which it will pay in Bitcoin, Ethereum and shares of the new company,” according to the filing on September 29. #Celsius will distribute at least $2.03B of crypto to Creditors. Meanwhile, NewCo will be seeded with up to $450 million in crypto. — Celsius NewCo Community (@CelsiusNewCo) October 2, 2023 Celsius customers have been waiting to be compensated since the company stopped payments in June 2022 following the collapse of the Terra ecosystem. The troubled crypto lender has announced that it will begin repaying its customers by the end of the year. Celsius’ legal representative, Christopher Koenig, told the judge at an Oct. 2 hearing. At the hearing, it was regarding approving the crypto lender’s reorganization plan. Koenig also said that the new company named “NewCo” will emerge from the process with an initial capital of 450 million dollars. New company, old members Behind NewCo is a group of companies called Fahrenheit LLC, which will manage the mining and staking business. NewCo’s board includes Scott Duffy and Thomas DiFiore, two co-chairs of Celsius’ committee of creditors, which was consulted at key stages of the sale process to represent the interests of those with money, and which was able to appoint six of the nine board members. Other board members include Frederick Arnold, chairman of the bankrupt Lehman Brothers; Elizabeth LaPuma, who leads the audit committee at commercial real estate firm WeWork; and Emmanuel Aidoo, investment banker Perella Weinberg. The approval of the safety regulators is also required to accept the plan. The judge in the case, Martin Glenn, is still considering whether to approve Celsius’ restructuring plan. According to his post on Celsius X, 95% of creditors would accept the plan. Despite the overwhelming majority of votes in favor of the reorganization, there are reportedly some creditors who oppose it. The voting results are in! Over 95% of creditors across all eligible classes voted to accept the Plan, a testament to our collaborative efforts during Chapter 11. @CelsiusUcc @FahrenheitHldg. — Celsius (@CelsiusNetwork) September 25, 2023 If Celsius’ plan is approved, it would be the first failed crypto platform in 2022 to be resurrected through Chapter 11 bankruptcy.
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