Celsius mulls improved bids, delays disclosure statement filing again

By Sarah Lizee

Olympia, Wash., May 12 – Celsius Network LLC is still considering bids following multiple rounds of negotiations and is once again pushing back the deadline to file a disclosure statement for a Chapter 11 plan, according to a notice filed Thursday evening with the U.S. Bankruptcy Court for the Southern District of New York.

The deadline is now May 25, as agreed between the debtors and official committee of unsecured creditors.

As previously reported, the debtors filed the plan, which is centered on NovaWulf Digital Management, LP acting as stalking horse bidder, on March 31.

The company expected to file a disclosure statement by April 12. However, the deadline was extended multiple times as alternative bids were received and negotiations continued.

The auction has been ongoing since April 25. During this time, the debtors and the committee have engaged in multiple rounds of negotiation with NovaWulf, Fahrenheit, LLC and the Blockchain Recovery Investment Committee (BRIC) to develop the highest and best bid.

Fahrenheit is an entity owned by U.S. Bitcoin Corp., Proof Group Capital Management LLC, Steven Kokinos and Ravi Kaza. The BRIC includes Van Eck Absolute Return Advisers Corp. and Global X Digital, LLC.

Celsius said that over the course of the negotiations, NovaWulf, Fahrenheit and the BRIC have all made significant improvements to their original bids.

The Hoboken, N.J.-based cryptocurrency lending platform filed bankruptcy on July 13, 2022 under Chapter 11 case number 22-10964.

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