| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers C > Headlines for Celsius Network LLC > News item |
Celsius Network equity holders seek official committee appointment
By Sarah Lizee
Olympia, Wash., Sept. 23 – A group of Celsius Network LLC equity holders is seeking appointment of an official preferred equity committee, according to a motion filed with the U.S. Bankruptcy Court for the Southern District of New York.
The movants are Community First Partners, LLC, Celsius SPV Investors, LP, Celsius New SPV Investors, LP and CDP Investissements Inc.
The group said the debtors and the official committee of unsecured creditors appear to be close to resolving certain key issues, including which debtors are liable with respect to customer claims, the appropriate allocation of any asset sale proceeds, and whether the claims of the debtors’ customers must be determined in dollars as of the petition date.
The equity holders said resolution of these critical issues directly affects their recoveries, and as such, they urgently require their own fiduciary – with the access, standing and resources equal to those of the unsecured creditors committee – to represent their interests.
The group said there are only two groups of real economic stakeholders in the cases: the retail customers and the equity holders. The interests of the customers are being pursued by the creditors committee, which is concededly a committee of customers, the group added.
“Not only is the UCC laser focused on maximizing value for the customers, without regard for the equity holders, but the debtors also have made it abundantly clear that the UCC is their partner, and these cases are ‘all about the customer,’” the group said.
“Thus, there is no stakeholder presently at the table advocating for the interests of the equity holders.”
The Hoboken, N.J.-based cryptocurrency lending platform filed bankruptcy on July 13 under Chapter 11 case number 22-10964.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.