Celsius Network's Disclosure Statement Gets Court Approval

blockchain.news:

Celsius Network LLC, commonly referred to as «Celsius,» has received approval for its Disclosure Statement from the United States Bankruptcy Court for the Southern District of New York. Here are the primary details surrounding this development:

1. Background: Celsius had previously undergone a Court-approved auction process in May 2023. The outcome of this auction was the selection of Fahrenheit, LLC, termed «Fahrenheit,» as the winning bidder.

2. Chapter 11 Plan: Celsius' proposed Chapter 11 Plan, often referred to as the «Plan,» involves a transaction with Fahrenheit. This collaboration aims to provide the necessary capital, management expertise, and technology to establish and operate a new entity named «NewCo.» A significant portion of the NewCo's Board of Directors will be nominated by the statutory committee of unsecured creditors from Celsius' Chapter 11 cases, known as the «Creditors Committee.»

3. Statements from Celsius: Chris Ferraro, the Chief Restructuring Officer & Interim Chief Operating Officer of Celsius, emphasized the company's commitment to achieving the best possible outcome for its customers and creditors. David Barse and Alan Carr, members of the Special Committee of the Board, also highlighted the importance of the Disclosure Statement's approval as a significant step in transitioning Celsius' assets to NewCo.

4. Voting Details: The company has dispatched a Solicitation Package to its eligible creditors, which contains the Disclosure Statement, Plan, voting instructions, and other pertinent information. To be considered, votes must reach Stretto, the company's claims and solicitation agent, by 4 p.m. Eastern Time on September 22, 2023. A Court hearing to review the proposed Plan is slated for