Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the joli-table-of-contents domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /var/www/html/news/wp-includes/functions.php on line 6114 Warning: Cannot modify header information - headers already sent by (output started at /var/www/html/news/wp-includes/functions.php:6114) in /var/www/html/news/wp-content/plugins/wp-fastest-cache/inc/cache.php on line 412 Breaking: 95% of Celsius Creditors Back Restructuring!

Breaking: 95% of Celsius Creditors Back Restructuring!

A Resounding Vote for Restructuring

More than 95% of Celsius creditors, spanning all eligible classes, have cast their votes in favor of the company’s restructuring plan. This significant decision took place on September 26, marking a pivotal moment in the firm’s Chapter 11 bankruptcy proceedings. The company has expressed its gratitude for the overwhelming support, deeming it a “testament to our collaborative efforts during Chapter 11.” With the confirmation hearing set for October 2, 2023, Celsius remains optimistic about receiving swift approval to continue on its path to emergence.

The Road to Restructuring: A Brief Overview

Celsius’s journey to this point has been tumultuous. The company filed for bankruptcy in July 2022, a move that came on the heels of the Terra/Luna ecosystem’s collapse. This was further exacerbated by a lawsuit from the Securities and Exchange Commission on July 13, 2022. The company’s CEO, Alex Mashinsky, faced arrest for charges including securities and wire fraud. Amidst these challenges, Roni Cohen-Pavon, a former executive of the cryptocurrency lender, pleaded guilty to four charges in September, agreeing to cooperate with investigators.

The restructuring plan has its intricacies. A disclosure statement from mid-August revealed intentions to redistribute approximately $2 billion in Bitcoin and Ethereum to Celsius creditors. This would be facilitated through equity distribution via a new entity, temporarily named “NewCo.” This new establishment aims to expand the debtors’ Bitcoin mining operations, stake Ethereum, and liquidate other non-liquid assets. The Fahrenheit Group, a conglomerate of crypto industry leaders and venture capital firms, will oversee NewCo’s management.

A Personal Take on the Matter

From my point of view, the overwhelming support for the restructuring plan signifies a collective hope for a brighter future for Celsius and its stakeholders. The company’s commitment to transparency, as evidenced by its regular updates and disclosures, is commendable. However, the road to recovery is fraught with challenges.

On the positive side, the establishment of “NewCo” and its management by the reputed Fahrenheit Group offers a glimmer of hope. The proposed redistribution of a significant amount of Bitcoin and Ethereum to the creditors is a step in the right direction. Yet, some creditors remain skeptical, with concerns about the actual execution of the plan and the timeline for retrieving their funds.

As I see it, while the vote is a significant milestone, the true test lies in the successful implementation of the restructuring plan. The upcoming confirmation hearing will be a crucial determinant of the company’s future trajectory.

Please follow and like us:
Scroll to Top