The bankrupt cryptocurrency lender Celsius Network said it would move forward with its Chapter 11 reorganisation plan by putting out a disclosure statement with information for claim holders.
The Celsius debtors announced in a notice to users dated April 7 that they will file a disclosure statement on April 12. According to a March 31 court filing in the United States Bankruptcy Court for the Southern District of New York, the statement was to provide claim holders with adequate information to vote on NovaWulf’s proposed restructuring plan.
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
In February, Celsius first suggested that Earn’s creditors form NewCo, a public platform they would own in full. Most of the company’s board members will be chosen by a group of unsecured creditors with no involvement or relationship with Celsius founders.
According to a statement from the debtors about the plan, the filing on April 12 will include details about the events that led up to Celsius’s bankruptcy, estimates of how much specific stakeholders will get back if the restructuring plan is approved, and answers to frequently asked questions. On May 17, the bankruptcy court will hold an approval hearing for the disclosure statement and vote on the plan.
Celsius filed for Chapter 11 bankruptcy in July 2022. Since then, the court has discussed Earn program assets, cryptocurrency holdings, Bitmain coupons, and user data. In March, the bankruptcy judge approved a settlement plan that allows Celsius Custody account holders to recover 72.5% of their cryptocurrency.