Celsius selected NovaWulf's offer to get out of bankruptcy.
Celsius has proposed that holders of debt will be given a single payment in the form of cryptocurrency, while creditors with a greater claim will have ownership shares in a fresh enterprise.
The embattled crypto lender, Celsius Network, has chosen NovaWulf Digital Management as the sponsor for its proposed Chapter 11 restructuring plan. This plan will see the investment advisory firm take over the operations of a new company, and the majority of customers are expected to recover up to 70% of their funds. This news is seen as a positive sign for the future of Celsius Network, and its customers can rest assured that their funds are well taken care of.
Earn creditors are set to be the majority shareholders of a new public platform called NewCo, with the Irish UCC appointing the majority of the company's board members. Notably, the plan has stated that there will be no involvement or relationship with Celsius founder and the board of NewCo. This move is seen as an effort to create a platform that is owned and operated by Earn creditors and has no ties to Celsius or its founder. It is hoped that this new public platform will bring value to Earn creditors, while also fostering a new level of trust with the public.
Today, NovaWulf announced a groundbreaking contribution to the creation of a new firm. The company will be making a direct cash contribution of between $45 million to $55 million to the new firm. This contribution is expected to have a major impact on the future of the organization and represents a major step towards NovaWulf's mission of supporting innovation and progress.
1-Last night Celsius (with UCC support) selected NovaWulf to sponsor a reorganization plan that will distribute liquid crypto to all account holders, as well as create a litigation trust and provide creditors with common equity in a NewCo holding illiquid assets like mining.
— Celsius Official Committee of Unsecured Creditors (@CelsiusUcc) February 15, 2023
A new company has been formed to house Celsius Network’s illiquid assets, mining business, and existing loan portfolio with plans to develop crypto-oriented services. The company will provide innovative and secure financial services to the crypto ecosystem. Celsius Network is a blockchain-based platform that provides users with a range of financial services, including lending, borrowing, and saving products.
A new plan has been introduced that would affect creditors with claims valued at $5,000 or less on the petition date. Under the plan, these creditors would be placed in a "Convenience Class" and will receive a one-time distribution of liquid crypto. The liquid crypto will be paid out in the form of Bitcoin (BTC), Ether (ETH) and USD Coin (USDC). This new plan could potentially provide convenience and benefit to many creditors.
Crypto holders with claims of $5,000 or more will soon receive a payment of residual cryptocurrency, with those with claims of over $1,000 given the option to opt out of the Convenience Class shares and still receive their payment. Those who choose to opt out will not be given a share of the Convenience Class shares, but instead, they will receive payment of their residual crypto. This payment will be calculated after the payments to smaller accounts have already been made.
Today, NewCo announced an exciting new program for their stakeholders. They will be offering ownership through equity and management share tokens, which will provide holders with dividends. This innovative program is sure to be a hit with investors and provide long-term financial security. NewCo is confident that this new venture will be successful and beneficial to all involved.
Celsius, a cryptocurrency platform offering user rewards in the form of CEL tokens, has announced a new offer for token holders. Those who hold CEL tokens, which currently trade around $0.50 on the open market, will receive their tokens purchased and valued at the initial coin offering (ICO) price of $0.20. This offer is seen as a way to reward current users of the Celsius platform and incentivize new users to join the growing Celsius community.
A new plan is calling for a "well-funded litigation trust" to pursue legal action against former Celsius Network CEO Alex Mashinsky and other Celsius executives. The trust is being developed in order to hold those responsible for any potential wrongdoings accountable. The trust will be funded by Celsius Network, and is a result of an investigation into potential misconduct by the firm and its leadership.
In a groundbreaking move, six leading firms have placed bids on Celsius crypto assets. This process, which saw Celsius contact over 130 parties, was headed by industry giants such as Binance, Bank To The Future, Cumberland DRW and Galaxy Digital. This marks a monumental moment for the crypto industry, as it sets a precedent for firms to actively pursue Celsius crypto assets. This could pave the way for more firms to explore the potential of the cryptocurrency market in the future.
In a dramatic turn of events, the company filed for Chapter 11 bankruptcy protection in July 2022 after abruptly halting withdrawals amid rumors of insolvency. Citing "extreme market conditions," the company announced their decision to seek bankruptcy protection in an effort to reorganize their finances. The public was left to speculate on the company's future in the wake of the announcement.
