The bankruptcy proceedings of cryptocurrency lender, Celsius, have been stretched into a convoluted drama, with a glimmer of hope finally surfacing. If things go as planned, the bankrupt entity is likely to offload its assets to Fahrenheit Group. This development comes following the green light from a federal judge.
The plan entails sending voting ballots to creditors from August 24 to September, where they will mull over the proposed sell-off. If approved, the creditors stand to receive a considerable $2 billion. The payout scheme offers returns of 67% for Earn holders and 85% for participants of the Borrow Program. Notably, the final decision lies in the court’s hands in October, with disbursement expected to kick-off before the year wraps up. However, unconvinced customers can sidestep the process entirely and opt-out.
Celsius’ interim CEO, Chris Ferraro, conveyed eagerness in delivering a final bankruptcy settlement, satisfying all parties and returning value posthaste. Winning the Celsius assets bidding on May 25 for a hefty $2 billion, Fahrenheit is slated to scatter the assets to Arrington Capital and other consortium companies within.
The proposed agreement will vest the new company with a speculated estimate of $500 million. In addition, the US Bitcoin Corp is set to erect fresh mining facilities, inclusive of a power-plant boasting 100-megawatts.
The potential restructuring of the company has primarily fetched supportive nods from the observer and commentator commonwealth within the crypto realm. The cog in the machine, however, is the creditor consent awaiting revelation. The setup in discussion aspires to repay creditors via the return of Bitcoin (BTC), Ether (ETH), equity shares in the new venture, and forfeitures from founder and former CEO Alex Machinsky.
Once the dust settles post Fahrenheit’s takeover of the bankrupt Celsius’ assets, a case pending against Machinsky, accused of inflating the company’s token value and misleading investors, will proceed. A hefty $50 million commitment by Fahrenheit to the new venture is also cooking, with the newly-formed company eyeing a Nasdaq listing, offering users shares as part and parcel of the bankruptcy settlement.
As it currently stands, the deal seems to hold water for all parties, particularly welcoming for creditors on the brink of securing their assets, albeit at a discounted rate. One can’t help but hope that the proceedings conclude in a manner beneficial to all stakeholders.
Source: Cryptonews
