The troubled cryptocurrency lending platform is currently pursuing the last necessary court authorization for its restructuring strategy, aiming to commence creditor repayments by the conclusion of 2023.
During an October 2 hearing in New York, the beleaguered cryptocurrency lending firm, Celsius Network, expressed its intention to initiate customer repayments by the end of the year, as it seeks approval for its reorganization plan. In his opening remarks at the confirmation hearing, Celsius' legal representative, Christopher Koenig, stated that the newly-formed entity referred to as "NewCo" would emerge from the proceedings with a substantial $450 million in initial funding.
According to a filing made on September 29, Celsius plans to partially reimburse its creditors through a combination of $2.03 billion in Bitcoin (BTC), currently trading at $27,589, Ether (ETH), presently priced at $1,660, and equity in the newly established company.
NewCo has received support from a consortium named Fahrenheit LLC, comprising various companies, to oversee the operations of its mining and staking business.
Should the Celsius proposal gain approval, it would stand as among the initial crypto platforms that faltered in 2022 to undergo revival through a Chapter 11 bankruptcy proceeding.
Since the Terra ecosystem's downfall led to the suspension of withdrawals by the company in June 2022, Celsius customers have been eagerly anticipating a resolution to their outstanding claims.
Photo by Sasun Bughdaryan on Unsplash
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