Court greenlights Celsius creditor vote with approval of disclosure statements

Celsius received court approval on its disclosure statements detailing a plan to sell assets to Fahrenheit, according to court documents filed Thursday.

The move brings the bankrupt crypto lender a step closer to exiting the bankruptcy process.

Creditors who oppose the plan have until Sept. 22 to file objections.

“We remain laser focused on creating the best outcome for customers and creditors and returning value as soon as possible,” said chief restructuring officer Chris Ferraro in a statement.

A court hearing on the plan will be held on Oct. 2. 

Read more: Celsius crypto fire sale is starting: $63M out of $160M sent to exchange

Celsius also won court approval this week to poll account holders on a proposal that would see Fahrenheit — which won the auction back in May — to let Fahrenheit provide “the capital, management team and technology required to successfully establish and operate the new company” dubbed NewCo. 

The proposal would see a new board of directors appointed, with the “majority” appointed by the committee of unsecured creditors.

“Our vision includes optimizing existing infrastructure, exploring new growth opportunities, diversifying revenue streams and delivering meaningful benefits to Celsius’ customers and creditors. We look forward to engaging more deeply with the Celsius community in the weeks ahead regarding the Plan,” said Steve Kokinos of Fahrenheit Holdings. 

Back in May, when Celsius announced that Fahrenheit had the winning bid, it said “Celsius’ account holders will own 100% of the new equity in NewCo.”

On Monday, the company received court approval to send voting ballots to creditors, allowing them to weigh in on the bankruptcy plan. The motion was granted after Celsius reached a settlement agreement with the official committee of unsecured creditors. 

Celsius, earlier this summer, faced lawsuits from the US Security and Exchange Commission, the Commodity Futures Trading Commission, and the Federal Trade Commission. 

The SEC claimed that Celsius made “numerous false statements about Celsius’s business” while “manipulating the market for CEL,” the native token for the platform.

On July 13, the FTC announced a $4.7 billion settlement with Celsius.

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