Celsius Willing To Pay $20 Million To NovaWulf To Find A Better Bid

Key Points:

• Bankruptcy crypto firm Celsius is still looking for better bids despite having previously suggested that NovaWulf is the best option.
• Celsius said it and its committee of creditors met with a potential buyer two days ago to consider alternatives.
• The bankrupt crypto lending platform said it is willing to pay $20 million as parting fees to NovaWulf if another contractor is selected.

Celsius Network attorney Chris Koenig revealed at a Manhattan bankruptcy court hearing on Wednesday that although asset management firm NovaWulf Digital Management has made an offer, the company is holding on to a better offer.

The bankrupt crypto lending platform also said it and its committee of creditors had a meeting with a potential buyer two days ago to consider alternatives.

At the hearing, Celsius asked Judge Martin Glenn for more time to submit the bankruptcy reorganization plan developed around the NovaWulf agreement.

The plan will cash out customers with less than $5,000 in crypto deposits and transfer ownership of the company’s remaining assets to customers with larger accounts.

Judge Glenn gave Celsius three more weeks to submit the Chapter 11 plan.

In addition, Koenig said it intends to offer NovaWulf a breakout fee of up to $20 million if Celsius chooses another contractor.

“If there is a higher offer, it will be because of the floor set by NovaWulf,”

Koenig said.

On March 2, Celsius’s creditors said the proposed deal with NovaWulf was the “best” option.

On March 2, according to a new court document, the official committee of unsecured creditors in Celsius’s bankruptcy said the proposed sale to digital asset investment firm NovaWulf is the “best choice”.

“While the committee will consider all options until the plan is confirmed and effective, the committee also believes that trading with NovaWulf is currently the most viable alternative,”

The filing said.

Under the proposed arrangement, smaller creditors will receive 70% of their funds back, while more significant creditors will receive a tokenized stake in a new entity managed by NovaWulf.

The new owners plan to inject between $45 million and $55 million into the business and add new entities such as private property and trade finance.

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