Bankrupt cryptocurrency lender Celsius Network has announced it will move forward with its Chapter 11 reorganization plan, providing a disclosure statement with information on claim holders. In a notice to users dated April 7, Celsius debtors said they would file a disclosure statement on April 12. A court filing dated March 31 with the U.S. Bankruptcy Court for the Southern District of New York said the statement was intended to provide "sufficient information" for claim holders to vote on a proposed restructuring plan sponsored by NovaWulf.
Celsius first proposed the plan in February, which proposes the creation of a public platform called NewCo wholly owned by Earn creditors. The committee of unsecured creditors will appoint a majority of the company's board of directors, with no "Celsius founder involvement or relationship." The April 12 filing will include details of the events that led to Celsius' bankruptcy, the expected recovery of certain stakeholders if the restructuring plan is approved, and answers to frequently asked questions, according to the debtor's statement about the plan. The bankruptcy court is expected to hold a hearing on May 17 to approve the disclosure statement and vote on subsequent plans.
Since filing for Chapter 11 bankruptcy in July 2022, Celsius' bankruptcy proceedings in court have included discussions of the company's Earn program assets, crypto assets, Bitmain coupons, and the personal information of its users. In March, a bankruptcy judge approved a settlement that would allow Celsius escrow account holders to get back 72.5 percent of their cryptocurrencies.
