- 1 The beleaguered crypto lender is moving ahead to reach the finale of restructuring soon.
- 2 Celsius recently requested in the court to pay back its creditors.
Once a prominent crypto lending platform, Celsius Network, is close to getting done with the much anticipated restructure. The beleaguered firm now awaits a judge’s decision on a recently proposed plan to repay its customers by 2023 end. Moreover, the company is moving ahead with rebranding and rejuvenating its mining and staking operations.
In the October 2nd confirmation hearing, Christopher Koenig, legal counsel of Celsus Network, stated the new company “NewCo” would be injected with $450 Million in seed funding. The newly emerged firm will be taking care of mining and staking businesses that took a hit when crypto lenders filed for bankruptcy.
During the heading, Judge Martin Glenn was also told the plans of customers to pay back before the end of this year.
According to the September 29 filing, Celsius plans to pay its creditors in Bitcoin (BTC) and Ethereum (ETH) along with the stocks in the newly formed company. Overall, it plans to disburse funds worth $2.03 Billion in payment.
A group of companies forming a consortium dubbed Fahrenheit LLC would back NewCo and its operations.
Now that the company has presented its restructuring plan during the hearing, it awaits Judge Glenn’s final decision before moving ahead. Additionally, the plan would also need clearance from security regulators in the region.
Will Celsius Restructure be the First in the Spree?
Following the Terra (LUNA) network collapse last year, the broader crypto market felt the ripple effect all over. It resulted in tremors in many major companies and eventually some of the companies fell to the ground. Among those filing for bankruptcy, Celsius also filed for bankruptcy under the Chapter 11 Bankruptcy Code.
The company sought restructuring under the bankruptcy filing. Now, if the court approves the payback plan, it will be the final move for Celsius to attain its restructured state. All the required major steps have been taken from accumulating assets to continuing remaining operations under the new name, etc. The creditors‘ payment is awaiting the judge’s final decision.
This would make Celsius the first company among those who filed for bankruptcy to get through the bankruptcy procedure.
Though the plan has the approval of the majority of community members, there are a handful of them who do not agree with moving ahead with payback.
Celsius has officially communicated, through a filed document presented at the confirmation hearing, that the Debtors have reached the confirmation stage with a Plan that enjoys resounding support.
Specifically, this Plan has garnered backing from more than 95% of voting Account Holders, both in terms of the number of participants and the total dollar amount involved. This high level of support indicates a substantial consensus among stakeholders, highlighting the potential for the successful confirmation of the Plan, it added.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.