Bankrupt cryptocurrency lender Celsius Network recently revealed that it would be going ahead with its planned Chapter 11 restructuring process with a disclosure statement including pertinent information for its claim holders.
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
As confirmed in a notice dated April 7, 2023 to clients, the Celsius debtors stated that they would be filing a disclosure statement on April 12, 2023.
As mentioned in a March 31, 2023 court filing submitted to the United States Bankruptcy Court for the Southern District of New York (SDNY), the statement is meant to offer “adequate” information for claim holders so they may vote on the suggested restructuring plan that’s supported by NovaWulf.
Celsius had initially shared the plan back in February. It recommends establishing a public platform that is completely owned by the Earn creditors, known as NewCo. The committee of unsecured creditors will reportedly appoint the majority of the company’s board members without any Celsius founder “involvement” or “relationship.”
As per the debtors’ statement referencing the plan, the April 12 filing is expected to include pertinent details of events that had led up to Celsius’ bankruptcy, anticipated recoveries for stakeholders if the restructuring process gets approved, as well as responses to common questions.
The bankruptcy court is also expected to carry out a hearing regarding approval of the disclosure statement on May 17, 2023 with a vote on the plan that is expected to follow afterwards.
After filing for Chapter 11 back in July 2022, Celsius’ bankruptcy proceedings in court have reportedly included discussions on assets from the company’s Earn program, crypto-asset holdings, Bitmain coupons, as well as personal details of its clients.
Last month, the bankruptcy judge had approved a settlement plan permitting Celsius custody account holders to get back as much as 72.5% of their cryptocurrency holdings.