The creditors involved in the Celsius bankruptcy have approved a plan that will see money returned to them and equity distributed through a new company. The majority of the classes voted in favor of the plan by more than 98%, according to a filing made on September 25 by the bankruptcy firm Stretto.
Although the plan has received nearly unanimous support from voters, it still needs to be confirmed at a hearing scheduled for October 2 in the Southern District of New York of the United States Bankruptcy Court.
Approximately $2 billion worth of Bitcoin and Ethereum will be distributed to Celsius Network creditors under the current plan, according to a disclosure statement submitted on August 17. Additionally, the plan will distribute stock in a new business that is currently known as “NewCo.”
The committee announced last month that “the Debtors will also distribute equity in a new company (“NewCo”) to creditors.” “NewCo will operate and expand the Debtors’ Bitcoin mining operations,” according to the statement. “NewCo will stake Ethereum, monetize the Debtors’ other illiquid assets, and create new, value-adding business opportunities.”
The new agreement, estimated to be worth $2 billion, calls for the acquisition of $450 million to $500 million in liquid cryptocurrency funds as well as the construction of new crypto mining facilities, including a 100 megawatt plant. Prominent companies like miner US Bitcoin Corp. and venture capitalist Arrington Capital are among the group of buyers.
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