Celsius Network, a distressed cryptocurrency lender, told a judge that it plans to start making payments to its clients by the end of the year, amid an October 2 hearing seeking approval of a reorganization plan.
In his opening remarks at the confirmation hearing in New York, Celsius’ legal counsel, Christopher Koenig, said the new company, dubbed “NewCo,” would emerge from the proceedings with initial funding of $450 million.
A September 29 filing shows that Celsius plans to partially repay its creditors using $2.03 billion in Bitcoin (BTC), Ethereum (ETH) and shares in the new company.
#Celsius It will distribute at least $2.03 billion in cryptocurrencies to creditors.
Meanwhile, NewCo will be awarded up to $450 million in cryptocurrencies.
– Celsius NewCo Community (@CelsiusNewCo) October 2, 2023
NewCo was backed by a group of companies in a consortium called Fahrenheit LLC which will manage the mining and quotas business.
The judge presiding over the case, Martin Glynn, is considering whether to approve Celsius’ restructuring plan. The plan will also need approval from security regulators. Although he received an overwhelming majority of votes in his favour, he is facing a challenge from some creditors, according to what he said. Reports.
“The Debtors have reached confirmation with a plan that has the support of more than 95% of voting account holders in number and dollar amount,” Celsius said in a statement. Deposit Presented at the confirmation hearing.
Related: Celsius creditors reported renewed phishing attacks ahead of the bankruptcy plan
If Celsius’ plan is approved, it will be one of the first failed cryptocurrency platforms from 2022 to be revived in a Chapter 11 bankruptcy case.
Celsius customers have been waiting to go full since the company halted withdrawals in June 2022 following the collapse of the Terra/Luna ecosystem.
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