- Celsius received approval for a new plan to help pay off their creditors.
- The total amount for this new plan is around $2 billion.
Celsius is a crypto lending company that was very prominent while still in operation. However, the lending platform filed for bankruptcy last year as part of the effects of the FTX collapse. Now, Celsius Creditors has made approval for a new restructuring plan.
Celsius Creditors Approve $2 Billion Restructuring Plan
- A new development in the Celsius bankruptcy case is that the creditors of the network made an approval a $2 billion restructuring plan. So, the new plan is to help Celsius pay back those they owe their money. Approximately 98% of Celsius Creditors of insolvent crypto lender Celsius voted in favor of the new restructuring plan. So, one of the reasons behind this new approval is the perks they will receive from the new approval. This restructuring plan will help the crypto lender return between 67% and 85% of their investments.
- This is not the only thing Celsius Creditors will get from. This new reorganization plan. So, the approval of this plan will help them get equity in a newly formed entity, tentatively called “NewCo.” This is according to new information from restructuring agency Stretto. So, the content of the new decision from Celsius Creditors is in a filing made on the 25th of September. The new development is quite massive for the crypto lending platform and can change the dynamics of things in their bankruptcy case.
More Details About the Restructuring Plan Approved By Celsius Creditors
- There’s more to the new reorganization plan for Celsius. So, there were objections from the U.S. Trustee. The US Trustee is a DoJ-backed entity responsible for overseeing the administration of bankruptcy cases in the United States. So, they were those who didn’t want approval of this new bankruptcy plan.
- It is important to note that there are still final confirmations needed to implement this plan. So, the final confirmation of this plan will await approval from the U.S. Bankruptcy Court in New York’s Southern District. The hearing from this court will be on the 2nd of October. So, the major content of this plan is the distribution of around $2 billion worth of Bitcoin and Ethereum to Celsius Creditors.
What Next For Celsius? Will This Plan Bring Them Back to Life?
- Now there’s approval from Celsius Creditors, will this new plan bring them back? Well, the major thing to note here is that this new plan is a step forward for the bankrupt crypto lending platform.
- Celsius may not come back as we know it, but the approval of this restructuring plan enables past investors to get their settlement.
Conclusion
Celsius Creditors have made the approval of a new plan that will enable them to get their settlement from the bankrupt crypto lending platform. So, this new restructuring plan will help them get around $2 billion worth of Bitcoin and Ethereum to share among them.
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The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. So, the content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from the company.
