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Celsius receives more time to solicit votes on Chapter 11 plan
By Sarah Lizee
Olympia, Wash., June 29 – Celsius Network LLC secured an extension of its exclusive period to solicit votes on a Chapter 11 plan by 91 days through Sept. 29, according to an order filed Thursday with the U.S. Bankruptcy Court for the Southern District of New York.
The company sought the extension after amending its plan.
Late last month, the company selected a proposal from Fahrenheit, LLC as the winning bid for its assets following a court-approved auction process.
Fahrenheit, a group consisting of US Bitcoin Corp., Arrington Capital, Proof Group, Steven Kokinos and Ravi Kaza, will provide the capital, management team, and technology required to establish and operate the new company contemplated in the bid, which will be implemented through the plan.
The key provisions of the plan include a distribution of Celsius’ liquid cryptocurrency to account holders on the plan’s effective date, or as soon as reasonably practicable after that; settlements with the Custody and Withhold groups; and the creation of a new public, regulatorily compliant, reporting company that will manage Celsius’ illiquid assets, including its institutional loan portfolio, mining business and alternative investments for the benefit of account holders.
The new company’s assets will include DeFi cryptocurrency assets, an institutional loan portfolio, private equity and venture capital investments, mining assets, and $500 million in liquid cryptocurrency, subject to adjustment.
Under the plan, Celsius’ account holders will own 100% of the new equity in the new company, subject to dilution by the equity to be distributed to Fahrenheit as management fees.
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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