Bankrupt Crypto Lender Celsius Network Pursues New Buyer Despite Existing Offer – What's Going On?
The bankrupt cryptocurrency lender, Celsius Network, is reportedly pursuing more bids and exploring new buyers despite having an offer on the table.
During a bankruptcy court hearing in Manhattan, Celsius attorney Chris Koenig said the company remains open to better offers, per a report by Reuters. He added that the lender's official unsecured creditors committee (UCC) met with a potential buyer just days ago to review an alternate proposal.
The crypto lender also asked judge Martin Glenn, who is overseeing Celsius' Chapter 11 bankruptcy proceedings, during the hearing to extend the time limit for submitting a bankruptcy restructuring plan built around the NovaWulf deal. The judge agreed to give Celsius an extra three weeks.
As reported, in mid-February, NovaWulf Digital Management reached a deal with Celsius to buy its lending operations and help bring an end to its bankruptcy case. Debtors of Celsius Network presented the sale plan to the U.S. Bankruptcy Court of the Southern District of New York.
The plan, which proposes a deal with NovaWulf that would allow the crypto lender to begin returning crypto assets to customers in June, has the support of the firm's creditors committee and is part of the overall reorganization plan for the company's retail platform and mining business.
As part of the plan, a "convenience class" of creditors, those with claims less than $5,000 related to Celsius Earn Accounts, will receive 70% recovery of their funds in the form of a one-time payment in Bitcoin, Ethereum or the stablecoin USDC.
On the other hand, Celsius customers owed more than $5,000 will be allowed to reduce their claim to that amount to join the class, and creditors owed at least $1,000 can opt out of the class and receive a
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