Celsius Gains Bankruptcy Court Approval for its Restructuring Plan
The post Celsius Gains Bankruptcy Court Approval for its Restructuring Plan appeared on BitcoinEthereumNews.com.
The New York bankruptcy court has approved Celsius Network’s restructuring plan, effectively enabling the cryptocurrency lending platform to come out of bankruptcy. Meanwhile, the US Securities and Exchange Commission (SEC) still has to greenlight the company’s new bitcoin mining firm. Celsius Exiting Bankruptcy More than one year after filing for Chapter 11 bankruptcy and freezing customer funds, Celsius will now be able to move ahead with its restructuring and repayment plan following an order from Judge Martin Glenn of the US Bankruptcy Court Southern District of New York. According to an excerpt from the court ruling, Judge Glenn said, “The Plan is confirmed pursuant to section 1129 of the Bankruptcy Code.” The court approval marks a significant development for the company, which experienced a liquidity crisis and collapsed in 2022. Celsius’ restructuring plan proposes transitioning into a new bitcoin mining entity owned by creditors called NewCo and involves the redistribution of $2 billion worth of BTC and ETH to customers, along with shares in the newly established company. A consortium comprising a group of companies, including Coinbase, called Fahrenheit LLC, will manage NewCo. As previously reported by CryptoPotato, the majority of Celsius creditors voted in support of the plan. Despite the latest development, NewCo will need to be approved by the SEC, according to a Bloomberg report. Judge Glenn previously called on the American securities regulator to decide whether or not the agency will give the go-ahead to Celsius’ plan. Meanwhile, if the bitcoin mining plan fails, the crypto lender may move to liquidation, per the report. Alex Mashinsky to Stand Trial in 2024 With Celsius cleared to exit bankruptcy, the company’s former CEO, Alex Mashinsky, is scheduled to stand trial in September 2024. Mashinsky, who is accused of defrauding Celsius customers and manipulating the value of the platform’s native…
Filed under: News - @ November 10, 2023 12:14 pm