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News

Celsius Reorganization Plan Will Return 98% Of Assets To Creditors

February 1, 2024 - Around 2 mins mins to read

Key Points:

  • The Celsius reorganization plan says the company will distribute over $3 billion to creditors following approval from 98% of account holders.
  • Celsius 2022 speculation, receiving $1.1 billion in Bitcoin, securing court approval for a plan targeting two-thirds repayment of the $2 billion debt.
Celsius Network, the cryptocurrency lender, has announced the successful completion of its reorganization plan, emerging from bankruptcy and initiating the distribution of over $3 billion in cryptocurrency and fiat currencies to its creditors.
Celsius Reorganization Plan Will Return 98% Of Assets To Creditors

The Celsius reorganization plan, approved by 98% of account holders, was confirmed by the Bankruptcy Court for the Southern District of New York on November 9, 2023.

As part of the reorganization, Celsius has established Ionic Digital, a new Bitcoin mining company owned by creditors and managed by Hut 8 Corp. The MiningCo Transaction, approved by the Bankruptcy Court on December 27, 2023, facilitated the distribution process.

Notably, Celsius responded to SEC feedback and transitioned to the MiningCo Transaction, increasing the cryptocurrency available for distribution by nearly $250 million through altcoin conversions and settlements.

Celsius Reorganization Plan: Emerges Strong from Bankruptcy

Celsius commenced the distribution of liquid cryptocurrency and fiat to creditors, marking the conclusion of an eighteen-month process. Ionic Digital, the newly created mining company, is expected to be publicly traded once approvals are secured, with Celsius’ creditors holding equity in the form of common stock.

Celsius faced speculation in 2022 after filing for bankruptcy but received $1.1 billion in Bitcoin, prompting discussions about customer repayments.

The Celsius reorganization plan aimed to address $2 billion in debt, with court-sanctioned proposals targeting two-thirds repayment to customers. The establishment of Ionic Digital positions the company to continue delivering recoveries to creditors, solidifying its resurgence in the cryptocurrency landscape.

Renowned investor Simon Dixon’s reflections on Twitter about customer repayments and the positive signals from a significant Twitter user further fueled anticipation surrounding Celsius’s comeback, backed by court-sanctioned reorganization and a strategic Bitcoin mining venture.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Celsius Network

Celsius Reorganization Plan

Hut 8 Corp

SEC

Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

Celsius Reorganization Plan Will Return 98% Of Assets To Creditors

Key Points:

  • The Celsius reorganization plan says the company will distribute over $3 billion to creditors following approval from 98% of account holders.
  • Celsius 2022 speculation, receiving $1.1 billion in Bitcoin, securing court approval for a plan targeting two-thirds repayment of the $2 billion debt.
Celsius Network, the cryptocurrency lender, has announced the successful completion of its reorganization plan, emerging from bankruptcy and initiating the distribution of over $3 billion in cryptocurrency and fiat currencies to its creditors.
Celsius Reorganization Plan Will Return 98% Of Assets To Creditors

The Celsius reorganization plan, approved by 98% of account holders, was confirmed by the Bankruptcy Court for the Southern District of New York on November 9, 2023.

As part of the reorganization, Celsius has established Ionic Digital, a new Bitcoin mining company owned by creditors and managed by Hut 8 Corp. The MiningCo Transaction, approved by the Bankruptcy Court on December 27, 2023, facilitated the distribution process.

Notably, Celsius responded to SEC feedback and transitioned to the MiningCo Transaction, increasing the cryptocurrency available for distribution by nearly $250 million through altcoin conversions and settlements.

Celsius Reorganization Plan: Emerges Strong from Bankruptcy

Celsius commenced the distribution of liquid cryptocurrency and fiat to creditors, marking the conclusion of an eighteen-month process. Ionic Digital, the newly created mining company, is expected to be publicly traded once approvals are secured, with Celsius’ creditors holding equity in the form of common stock.

Celsius faced speculation in 2022 after filing for bankruptcy but received $1.1 billion in Bitcoin, prompting discussions about customer repayments.

The Celsius reorganization plan aimed to address $2 billion in debt, with court-sanctioned proposals targeting two-thirds repayment to customers. The establishment of Ionic Digital positions the company to continue delivering recoveries to creditors, solidifying its resurgence in the cryptocurrency landscape.

Renowned investor Simon Dixon’s reflections on Twitter about customer repayments and the positive signals from a significant Twitter user further fueled anticipation surrounding Celsius’s comeback, backed by court-sanctioned reorganization and a strategic Bitcoin mining venture.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.