Insolvent cryptocurrency lender Celsius Network has declared that it will file a Chapter 11 restructuring plan and will provide claim holders with a disclosure statement including information.
Last week, we filed our Chapter 11 Plan of Reorganization (“the Plan”) with the support of the
Committee and the Plan Sponsor, NovaWulf. You can find the Plan here:https://t.co/RY95ncZSl8— Celsius (@CelsiusNetwork) April 7, 2023
According to a court document filed on March 31 in United States Bankruptcy Court for the Southern District of New York, the statement is intended to give claim holders “adequate information” so they can vote on the restructuring plan that NovaWulf sponsors.
The plan was first introduced by Celsius in February and called for the development of NewCo, a public platform that would be entirely owned by Earn creditors. The committee of unsecured creditors will appoint the majority of the company’s board members without the involvement or connection of the Celsius founders.
The filing on April 12 will include information on the circumstances surrounding Celsius’ bankruptcy, estimated recoveries for certain stakeholders, and responses to frequently asked questions. A hearing at the bankruptcy court regarding the approval of the disclosure statement is slated for May 17, followed by a voting session.
Ever since Celsius filed for Chapter 11 in July 2022, the crypto lender’s bankruptcy proceedings in court have covered topics such as the company’s Earn programme assets, cryptocurrency holdings, Bitmain coupon codes, and user personal information. A settlement proposal allowing Celsius custody account holders to recover 72.5% of their cryptocurrency was granted by the bankruptcy judge in March.
