Bankrupt cryptocurrency lender Celsius Network is reportedly chasing higher bids and searching for new buyers despite having one offer on the table.
During a bankruptcy court hearing in Manhattan, Celsius attorney Chris Koenig said the company was open to better offers. reports by Reuters. He said the official unsecured creditors committee (UCC) of the lender met with a potential buyer a few days back to review the alternative offer.
The crypto lender also asked Judge Martin Glenn, who is overseeing Celsius’ Chapter 11 bankruptcy proceedings, to extend the deadline for submitting the bankruptcy reorganization plan built around the Novawolf deal. The judge agreed to give Celsius an additional three weeks.
As informed ofIn mid-February, NovaWulf Digital Management entered into an agreement with Celsius to purchase its lending operations and help end its bankruptcy case. Debtors to Celsius Network submitted a plan of sale to the US Bankruptcy Court for the Southern District of New York.
The plan, which proposes a deal with NovaWulf that will allow the crypto lender to begin returning crypto assets to customers in June, has the backing of the firm’s committee of creditors and an overall restructuring for the company’s retail platform and mining business. Part of the plan.
As part of the plan, a “facilitated class” of creditors, who have claims of less than $5,000 related to Celsius Earn accounts, will receive 70% of their funds as a one-time payment in bitcoin, ethereum or a stablecoin. Recovery will be received. USDC.
On the other hand, Celsius customers with more than $5,000 owed will be allowed to reduce their claims to that amount in order to join the class, and creditors with less than $1,000 owed can opt out of the class and have yet-to-be-determined portions. can be obtained. Amount recovered for normal Earn participants.
The report states that if Celsius chooses an alternative bidder, it intends to offer Novawolf up to $20 million in a breakup fee.
Celsius filed for Chapter 11 bankruptcy in July last year in an effort to reorganize and stabilize its business and maximize value for all of its stakeholders.
Celsius allocates $25M for evacuation
According to the latest development in the Celsius bankruptcy operation, the crypto lender has Established A wallet with $25 million in digital assets to withdraw to its custodial account holders. The fund consisted of $10.39 million in USDC, $8.8 million in ETH, and another $6 million in various digital assets.
As of Wednesday, custodial account holders had withdrawn $17.7 million of these cryptocurrencies, Celsius interim CEO Chris Ferraro said in a court hearing, noting that another $3.5 million of withdrawals are in process. He said that represents 60% of eligible custody users and 80% by crypto value.
Earlier this month, Celsius said it opened withdrawals for select custodial account holders with some limits after receiving approval from the US bankruptcy court. Celsius was authorized to distribute 94% of the custodial assets of each eligible user, according to a court documents,