Celsius chooses NovaWulf's bid to exit from bankruptcy

cointelegraph.com:

Bankrupt crypto lender Celsius Network has chosen NovaWulf Digital Management as the sponsor for its proposed Chapter 11 restructuring plan which will see the investment advisory firm take over the operations of a new company, and most customers estimated to recover up to 70% of their funds.

Celsius presented the plan on Feb. 15 in a filing to the United States Bankruptcy Court for the Southern District of New York. The proposed plan has the support of the Celsius Official Committee of Unsecured Creditors (UCC) — a body representing the interests of Celsius account holders.

The plan sees the creation of a new public platform fully owned by Earn creditors called NewCo with the UCC appointing the majority of the company's board members. The plan notes the new board will have no "Celsius founder involvement or relationship."

NovaWulf will also make a direct cash contribution of between $45 million to $55 million to the new firm.

1-Last night Celsius (with UCC support) selected NovaWulf to sponsor a reorganization plan that will distribute liquid crypto to all account holders, as well as create a litigation trust and provide creditors with common equity in a NewCo holding illiquid assets like mining.

In the filing, Celsius said "the NovaWulf plan provides the best method to distribute the Debtors’ liquid crypto assets and maximize the value of the Debtors’ illiquid assets through a new company run by experienced asset managers."

The new company will house Celsius' illiquid assets, mining business and existing loan portfolio with future plans to develop crypto-oriented services.

Under the plan, creditors with claims valued $5,000 and below on the petition date will be placed in a “Convenience Class,” receiving "a one-time