Celsius Network seeking court approval for repayment plan

October 03, 2023 05:20 PM AEDT | By Invezz

Celsius Network seeking court approval for repayment plan — Image source: Invezz

Celsius Network to repay creditors in crypto

Celsius Network intends to partially repay its creditors using cryptocurrencies, specifically $2.03 billion in Bitcoin (BTC) and Ethereum (ETH). Additionally, creditors will receive stock in the freshly established NewCo. This multi-faceted approach aims to make creditors whole again.

In the meantime, under the proposed restructuring plan, a new entity named “NewCo” is set to be launched, bolstered by a substantial $450 million in seed funding.

#Celsius will distribute at least $2.03B of crypto to Creditors.
Meanwhile, NewCo will be seeded with up to $450 million in crypto.
— Celsius NewCo Community (@CelsiusNewCo) October 2, 2023

This development marks a crucial step towards the platform’s revival.

Celsius’ legal battle

The fate of Celsius Network’s reorganization plan hinges on legal approval, currently under consideration by Judge Martin Glenn. The plan’s clearance by security regulators is also a critical milestone that must be achieved.

Despite receiving overwhelming support from creditors, with over 95% in favour, some challenges to the plan persist.

Celsius Network’s tumultuous journey, sparked by the collapse of the Terra/Luna ecosystem and the subsequent suspension of withdrawals in June 2022, could find resolution through this restructuring plan. If approved, it would mark a noteworthy event as one of the first failed crypto platforms from 2022 to successfully undergo a Chapter 11 bankruptcy revival.

The post Celsius Network seeking court approval for repayment plan appeared first on Invezz.

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