Celsius, a company facing money problems, is considering asking customers who borrowed more than $100,000 in the three months before they declared bankruptcy on July 13, 2022, to return some of that money. If these customers refuse, the company might take legal action against them.
The document mentions that if someone withdraws over $100,000 and meets certain conditions (like not being part of specific excluded groups, not voting against the company’s reorganization plan, and not choosing to decline certain releases), they can resolve their obligation by paying back 27.5% of the withdrawn amount by January 31, 2024.
The filing stated, “Any Withdrawal Preference Exposure that is not settled by January 31, 2024, will be addressed by the Litigation Administrator after the Effective Date through separate correspondence or other action.”
Those who resolve their accounts will be freed from any legal actions related to avoidance and will get payments as per the restructuring plan. They will have to submit an election form by January 25.
If customers don’t resolve their accounts by the set date, the administrators will handle how withdrawal preferences are managed. Customers could also face legal action to reclaim any benefits they have received.
Also Read: Celsius Unstaked $470M Ethereum For Creditors Repayment
