Bankrupt firm Celsius plans to restart, repay creditors by year-end

The defunct crypto platform Celsius Network in a New York bankruptcy hearing unveiled plans to repay creditors whose funds are being held in the platform. This comes amidst Celsius’s plans for a reorganization.

Celsius filed for Chapter 11 bankruptcy in June 2022 and is now looking to restart, this time as a user-owned Bitcoin miner. At the kick-off of the firm’s bankruptcy trial, Celsius lawyer Christopher S. Koenig said that the new company would be seeded with $450 million in capital. Not only that, it would receive financial backing from a group of companies selected to manage the business.

The consortium tagged Fahrenheit LLC will be led by investment firm Arrington Capital. The Lawyer affirmed that the consortium is “putting their money where their mouth is.”

The Celsius repayment plan slated before the year ends involves distributing “at least” $2.03 billion in cryptocurrency and stock in the new company to its creditors. Further, creditors will be allowed a stake in litigation against executives of the firm charged with fraud by the authorities.

Celsius’s plans face a challenge as some of its creditors including an Affiliate of Lantern Ventures oppose its plans, stating that Celsius advisers “overvalued” the new company and “must also be cleared by securities regulators.”

However, Judge Martin Glenn is considering whether to approve Celsius’s plans which would enlist it as one of the first to reemerge in Chapter 11 following insolvency cases last year. 

Read also; 

Nigerian minister unveils ambitions for Artificial Intelligence; targets 50k jobs

What do you think of this article? Share comments below.