At the approval hearing on October 2, Celsius Network, a crypto lending platform, told the judge that it plans to start repaying customer funds by the end of the year. The company's legal counsel said the new company, NewCo, will receive $450 million in seed funding. According to a document on September 29, Celsius plans to use $2.03 billion in Bitcoin and Ethereum and the new company's shares to partially repay creditors.
The new company is supported by some companies in the consortium Fahrenheit LLC, which will manage mining and staking operations. Judge Martin Glenn is considering approving Celsius's reorganization plan, but the plan still needs approval from securities regulators. Although the vast majority of creditors support the plan, some creditors have raised questions.
Celsius said: "The plan proposed by the debtor is supported by more than 95% of voting account holders." If approved, Celsius will become the first crypto platform to recover in a Chapter 11 bankruptcy case since 2022
The new company is supported by some companies in the consortium Fahrenheit LLC, which will manage mining and staking operations. Judge Martin Glenn is considering approving Celsius's reorganization plan, but the plan still needs approval from securities regulators. Although the vast majority of creditors support the plan, some creditors have raised questions.
Celsius said: "The plan proposed by the debtor is supported by more than 95% of voting account holders." If approved, Celsius will become the first crypto platform to recover in a Chapter 11 bankruptcy case since 2022