95% of Celsius Creditors Vote to Accept Restructuring Plan
More than 95% of creditors across all eligible classes voted to accept the plan, reported Celsius on September 26.
It is a “testament to our collaborative efforts during Chapter 11” and a “major milestone” it added in reference to the bankruptcy proceedings.
“The confirmation hearing is scheduled to begin October 2, 2023. We are hoping for swift approval to continue our path to emergence.
The voting results are in! Over 95% of creditors across all eligible classes voted to accept the Plan, a testament to our collaborative efforts during Chapter 11. https://t.co/9Z5xlBhNts @CelsiusUcc @FahrenheitHldg.
— Celsius (@CelsiusNetwork) September 25, 2023
Creditors Not Celebrating Yet
However, the responses to the announcement were far from congratulatory. A large number simply asked when they would get their money back.
Celsius shared a declaration filed in the bankruptcy case regarding the solicitation and tabulation of votes on the proposed reorganization plan.
According to the Sept. 25 filing, most of the creditor classes voted in favor of the plan by more than 98%.
It also summarized other elections made by creditors, such as opting into a convenience class, making weighted distribution elections, opting out of third-party releases, and contributing claims.
A disclosure statement filed in mid-August revealed that the current plan will see around $2 billion worth of Bitcoin and Ethereum redistributed to Celsius creditors. The plan included equity distribution via a new company, temporarily labeled “NewCo.”
The new company plans to operate and further build out the debtors’ Bitcoin mining operations, stake Ethereum, and monetize other illiquid assets.
At the time, Celsius stated that the amended plan would enable most clients with interest-bearing Earn accounts to retrieve up to 67% of their funds.
Notably, NewCo will be managed by the Fahrenheit Group, an association of crypto industry executives and venture capital firms.
Some creditors remained unimpressed with the proceedings, however. Sudden Impact Labs director Joey Hendrickson said:
“You financially impregnated the clients you abused, stole our cash, legally ended the financial relationship, and “collaborated” by making us pay your friends to babysit NewCo while we can’t even be in the room. This post is gaslighting.”
Celsius Executive Pleads Guilty
Celsius filed for bankruptcy in July 2022 following the collapse of the Terra/Luna ecosystem. This followed a lawsuit from the Securities and Exchange Commission on July 13, 2022.
Celsius CEO Alex Mashinsky was arrested at the same time for securities and wire fraud, among others.
On Sept. 15, CryptoPotato reported that Roni Cohen-Pavon, a former executive at the bankrupt cryptocurrency lender, pleaded guilty to four charges and agreed to collaborate with investigators.
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Filed under: Bitcoin - @ September 27, 2023 4:17 am