By: Eva Baxter
Celsius Network, a bankrupt cryptocurrency lending firm, is planning its comeback. During the company's bankruptcy proceedings, the legal counsel for Celsius, Christopher S. Koenig, revealed that the relaunch is intended to be backed by $450 million in seed funding. This fund injection comes from a consortium of companies grouped under Fahrenheit LLC, who won a bid for Celsius's assets earlier in May 2023.
With a restructuring plan in place, Celsius targets to begin repaying its creditors and users by the end of 2023, using $2.03 billion in Bitcoin and Ethereum along with stock in the restructured company, referred to as "NewCo". NewCo positions itself as a user-owned Bitcoin miner, sounding an uncertain note for the firm's lending business that had been central before. It's also anticipated that creditors will receive stake in litigation against previous Celsius CEO Alex Mashinksy along with other executives.
Though the revival plans have garnered the support of a majority of creditors and customers, with 95% of them voting in favor during a recent poll, certain opposition remains. One of the creditors, owed $82 million, alleges that advisers have puffed up the value of the new firm. To move ahead with Celsius's restructuring plan, the approval of a bankruptcy judge and securities regulators is mandatory.
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