Home Business Celsius Creditors Favor Crypto Reimbursement Plan with 98% Vote

Celsius Creditors Favor Crypto Reimbursement Plan with 98% Vote

by Janine Lindsey

Celsius Creditors Approve Reorganization Plan Offering Repayment in Bitcoin, Ether, and Equity

Celsius Network, a prominent player in the cryptocurrency lending space, has recently faced bankruptcy, leaving its creditors in a state of uncertainty. However, a reorganization plan has now been presented to the creditors, offering them repayment in Bitcoin, Ether, and equity in a newly formed entity called “NewCo.” This proposal has received overwhelming support, with acceptance rates exceeding 98 percent for most creditor classes.

The reimbursement plan, which aims to provide relief to Celsius creditors, awaits final approval from the United States Bankruptcy Court for the Southern District of New York. A session to grant this approval has been scheduled for October 2, marking a critical milestone in the process.

While the majority of Celsius creditors have welcomed the reorganization plan, there has been some opposition. Certain creditors have expressed reservations about receiving shares in a new and untested venture, hoping instead for the return of CEL tokens, the native currency of Celsius. However, the court has highlighted the legal and financial complexities surrounding this request.

Additionally, the management of NewCo will be overseen by the Fahrenheit Group, a consortium that successfully acquired Celsius’ assets earlier this year. This change in management aims to bolster Bitcoin mining operations and introduce compliant business opportunities driven by value.

The implications of this bankruptcy resolution extend far beyond the creditors and the reorganization plan itself. Celsius Network faced significant scrutiny for alleged fraud, unregistered sales, and price manipulation of its CEL token. As a result, the downfall of Celsius serves as a cautionary tale in the volatile world of cryptocurrency.

While the reorganization plan presented to creditors offers hope for repayment, the final outcome of the Celsius saga remains uncertain. The upcoming court hearing will have a decisive impact on the fate of billions in assets and the future of NewCo. Celsius creditors and stakeholders anxiously await the court’s ruling and the subsequent resolution of this complex and high-stakes situation.

In conclusion, the approval of the reorganization plan by Celsius creditors is a significant development in the company’s bankruptcy proceedings. Offering repayment in Bitcoin, Ether, and equity, the plan aims to alleviate the financial burden on creditors. However, the final outcome and the future of NewCo will depend on the court’s decision, which is eagerly awaited by all parties involved.

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