Celsius continues to pave the way for its recovery.
Celsius Network, the troubled cryptocurrency lending platform, is awaiting the court's decision on its comprehensive restructuring strategy.
During a confirmation hearing held on October 2nd in New York, Celsius Network informed the court of its intention to commence repayments to its customers by the end of the year.
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Represented by legal counsel Christopher Koenig, the firm revealed that the newly formed company, referred to as "NewCo," is set to benefit from an initial funding pool of $450 million.
Significant details about the repayment scheme emerged in a filing dated September 29th.
According to the document, Celsius Network aims to meet part of its financial obligations to creditors through a mix of $2.03 billion in Bitcoin, Ethereum, and equity in NewCo. This new entity is financially backed by a consortium of companies named Fahrenheit LLC, which will oversee the company's mining and staking ventures.
Presiding Judge Martin Glenn is contemplating giving the green light to the company's proposed restructuring plan. Although the plan has been overwhelmingly supported, garnering over 95% approval from voting Account Holders, it still faces opposition from a minority group of creditors.
It is worth noting that the plan is also pending regulatory clearance from security authorities. The crypto lending platform filed for Chapter 11 bankruptcy in July 2022 in the United States Bankruptcy Court for the Southern District of New York. At that time, the company claimed to use its bankruptcy to stabilize its business and work out restructuring for all stakeholders.
As Celsius Network pushes for court approval of its restructuring blueprint, the future seems to be taking a hopeful turn for customers and other creditors. If the court and regulatory bodies give their nod, the company will be one of the first bankrupt cryptocurrency platforms to achieve a revival.