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Home » Celsius makes important deals to get out of bankruptcy

Celsius makes important deals to get out of bankruptcy

Cryptocurrency lending platform Celsius Network announced the completion of two key agreements to emerge from bankruptcy, which it announced in July 2022. If successful, this would be good news for their creditors, who would have the opportunity to recover their funds.

Accordingly documentation The agreements presented by Celsius include the company itself and the creditors’ committee, which represents various groups of creditors. Among all of them They add up to more than 30,000 claims and could recover $7.8 billion in funds if Celsius’ plan goes ahead.

Celsius is asking that Judge Martin Glenn’s motion be considered at the Aug. 10 hearing, with intent to confirm the payment schedule in October and “to begin distributions to creditors before the end of the calendar year.”

One of the company’s proposals is to regulate fraud and misrepresentation claims by increasing creditor recovery by 5%. Creditors retain the right to file individual lawsuits against the company if they do not accept the proposal.

On the other hand, for those involved in investment programs in Celsius and affected by the bankruptcy, A plan is proposed that will allow them to receive part of their funds in cryptocurrencies. Also compensation in shares of the new company resulting from the bankruptcy proceedings.

As for the details of the agreement, it was announced that it came about “after three days of mediation” with Judge Michael E. Wiles, Judge of the Bankruptcy Court for the Southern District of New York, and various creditor groups involved. “Many of the proofs of claim filed by account holders sought damages for fraud, misrepresentation, and similar non-contractual causes of action,” they explain.

News of the month in the Celsius case

The latest developments in the Celsius case have also had a positive impact on the company. On July 10th, as reported in CriptoNoticias, received approval to sell its altcoin holdings in exchange for bitcoin (BTC) and ether (ETH).. In this way, the devaluation caused by the decline in the market value of several of these cryptocurrencies can be stopped.

Meanwhile, former Celsius CEO Alex Mashinsky was arrested and ordered to post $1 million bail to regain his freedom. He faces multiple charges related to fraud and fraud, a result of the bankruptcy his company filed in July 2022.

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