NewCo, which is set to replace the bankrupt Celsius, получит $450 million in digital assets and go public on Nasdaq if the restructuring plan is approved by the court.
During the latest hearings, representatives of NewCo заявили that they intend to start paying customers whose funds were frozen on the crypto-lending platform. According to them, this is “the best possible option” for compensation.
The Fahrenheit Group consortium has been appointed as the manager of the new firm. In May the organization became the winner of the tender for the assets of the bankrupt platform.
Fahrenheit also pledged to invest $50 million in NewCo. Dividends will be paid to the company in the form of ordinary shares. In addition, the consortium plans to take on Celsius’s institutional business and the company’s mining division.
By the end of September, 98% of Celsius’s bankruptcy-affected creditors supported the restructuring plan. Under the proposal, debtors would distribute Bitcoin and Ethereum worth $2 billion.
In addition to the judge, the plan must also be approved by the U.S. Securities and Exchange Commission. If approved, Celsius would become the first company to rebound after a wave of bankruptcies in 2022.
If the plan is not approved, the crypto-lending service will begin liquidating assets, significantly reducing payouts to affected investors.
In June 2022 Celsius suspended withdrawals, exchanges and transfers between accounts due to ‘extreme market conditions’.
After filing for bankruptcy, the firm reported a hole in its balance sheet of $1.2 billion. In August it emerged that the company’s liabilities exceeded its assets by $2.85 billion.
In September, the platform’s head Alex Mashinsky left the CEO post. In early 2023, the New York Attorney General accused him of defrauding investors of billions of dollars.
On July 13, the U.S. Department of Justice brought seven criminal charges against the former Celsius chief. Among them were securities fraud, manipulation of the CEL token price and misleading investors.
Subsequently, the U.S. Federal Trade Commission announced a settlement of claims against the company. The agreement provides for the platform to pay $4.7 billion.