Bankrupt cryptocurrency lender Celsius Network’s debtors have reportedly released a sale plan to the U.S. Bankruptcy Court of the Southern District of New York. In consultation with the unsecured creditors’ official committee, Celsius debtors’ sale plan goes live with NovaWulf as plan sponsor.
The said plan forms a vital element of Celsius’ reorganization plan for its retail platform and mining business. The plan is formed with an in-principle agreement with NovaWulf Digital Management, a digital asset investment company, as the official plan sponsor.
NovaWulf was selected by the debtors since it “provides the best method to distribute the Debtors’ liquid crypto assets and maximize the value of the Debtors’ illiquid assets,” per the official filing.
The official consultation with the unsecured creditors’ official committee involved following a “comprehensive” sale process with six bids for the retail platform, and three bids for the mining operation. What follows next is the finalization of a binding agreement to appoint NovaWulf as the successful bidder.
As per the plan, NovaWulf shall now contribute via direct cash a sum of $45 million to $55 million to NewCo. (a corporate spin-off). NewCo shall operate as a regulatory-compliant public reporting entity owned 100% by Earn creditors. The Earn creditors stand to receive a considerable liquid crypto distribution. 1 Convenience Class of creditors would get 70% of their funds recovered.
Celsius reportedly had earlier proposed a 5-month extension of restructuring, but it was not approved by the U.S. government and its creditors. But as per the U.S. Trustee William Harrington,
There is no basis given to extend this case another five months just for the filing and soliciting of a plan.
William Harrington is a Department of Justice (DoJ) official with bankruptcy cases’ responsibility.
