Crypto lending firm Celsius Network has announced that it will be moving forward with its Chapter 11 restructuring plan. In a notice to users on April 7, the company revealed that it would file a disclosure statement on April 12 containing information for claim holders. The statement is aimed at providing “adequate information” for claim holders to vote on the proposed restructuring plan sponsored by NovaWulf.
Celsius initially presented the plan in February, which proposed creating a public platform fully owned by Earn creditors called NewCo. The majority of the firm’s board members will be appointed by the committee of unsecured creditors, with no involvement or relationship from Celsius founders.
The April 12 filing will include details of events leading up to Celsius’ bankruptcy, projected recoveries for certain stakeholders, and answers to frequently asked questions. The bankruptcy court is expected to conduct a hearing regarding approval of the disclosure statement on May 17, with a vote on the plan to follow.
Celsius filed for Chapter 11 in July 2022, and its bankruptcy proceedings in court have included discussions on assets from the firm’s Earn program, crypto holdings, Bitmain coupons, and the personal information of its users. In March, the bankruptcy judge approved a settlement plan allowing Celsius custody account holders to get back 72.5% of their crypto.
