Celsius has submitted its bankruptcy restructuring plan to creditors for a vote, following approval from the court

Celsius, a crypto lender that has declared bankruptcy, is planning to sell its assets to Fahrenheit Group. The proposal has been approved by a judge as the bankruptcy proceeding comes to an end. Celsius will send ballots to its creditors between August 24th and September 22nd, allowing them to vote on the proposal. If approved, creditors could receive up to $2 billion, with returns ranging from 67% for Earn holders to 85% for those in the Borrow Program. The final decision on the settlement will be made by the court in October, and disbursement will occur before the year's end. Customers who are not satisfied with the arrangement may opt-out without participating. The ruling was given by Judge Martin Glenn of the Southern District of New York Bankruptcy Court after a year-long bankruptcy case, during which creditors considered their assets.
Chris Ferraro, the current CEO of Celsius, has expressed a strong desire to reach a final settlement for the bankruptcy proceedings that would satisfy all parties involved.
“…we remain laser-focused on creating the best outcome for customers and creditors and returning value as soon as possible.”
On May 25th, Fahrenheit successfully won the bidding for the purchase of Celsius assets, for a sum of around $2 billion. As part of the agreement, Arrington Capital and other companies within the Fahrenheit consortium will receive assets that are being distributed. The newly formed company is expected to receive approximately $500 million, while the US Bitcoin Corp will be constructing new mining facilities, including a 100-megawatt plant.
The fate of a novel construction is uncertain
Most crypto commentators view the plan to restructure the company positively, but the final decision rests with the creditors. Under the arrangement, creditors will receive payment in the form of Bitcoin (BTC) and Ether (ETH), equity shares in the new business, and forfeitures from the former CEO, Alex Machinsky. Following bankruptcy and the subsequent asset takeover by Fahrenheit, the company will continue legal action against Machinsky for allegedly inflating the company's token value and misleading investors. Fahrenheit will invest $50 million into the new company, which will also be listed on Nasdaq, giving users a share of the bankruptcy settlement. The deal seems promising for all parties involved, particularly the creditors who will finally receive payment for their assets, albeit at a discounted rate due to the crypto lender's bankruptcy filing last year.