BTC-Newswire

Celsius Creditors Could Recoup Up To 85% Of Holdings If New Proposal Is Approved

Press Releases Crypto News Bitcoinist Celsius Creditors Could Recoup Up To 85% Of Holdings If New Proposal Is Approved

Amid the Celsius bankruptcy, permission has been granted to the company by a US bankruptcy judge to consider creditor approval for its bankruptcy plan. Creditors are to vote on Celsius’s plans to sell assets to the Fahrenheit consortium after a judge approved disclosures on Thursday, and creditors are expected to recoup up to 85% of holdings once this is done.

Creditors To Decide Next Steps

The Celsius disclosure statement and solicitation materials at a US Bankruptcy Court hearing in Manhattan which stated Celsius had given creditors sufficient information to vote on the proposed restructuring, has been signed off by Judge Martin Glenn.

Calsius’ bankruptcy plan to sell assets to the Fahrenheit Group would return some crypto deposits to retail customers and hand control of the available business lines, which includes Bitcoin mining and staking.

Furthermore, Fahrenheit plans to buy a minority stake in the new business for about $50 million and then publicly list the new company’s stock on Nasdaq, allowing customers to sell equity shares that they will receive as part of their bankruptcy recovery, as stated by the court documents.

Although some creditors were utterly against this idea, the official committee appointed to represent junior creditors agrees with this idea and has recommended that Celsius customers vote in favor of it.

The vote involving the sale of assets to a consortium is expected to take place between August 24 and September 22, and creditors will be sent ballots to cast their votes on this plan.

Celsius estimates that customers who had interest-bearing Earn accounts and those who participated in Celsius Borrow Program will receive up to 85% recovery through the return of liquid crypto assets like Bitcoin (BTC) and Ethereum (ETH).

CEL price struggles amid bankruptcy | Source:

Go to Source to See Full Article
Author: Scott Matherson

Did you like this?
Tip BTC Newswire with Cryptocurrency