Court issued first decision in case bankruptcy Celsius
2023.02.16 14:32
Court issued first decision in case bankruptcy Celsius
By Tiffany Smith
Budrigannews.com – A bankruptcy judge has ruled that debtors of crypto lender Celsius Network can sell coupons for mining company Bitmain worth approximately $7.4 million.
Allowing Celsius debtors to sell their Bitmain coupons was stated by United States Bankruptcy Judge Martin Glenn in a court filing on February 16 as being in the “best interests of the Debtors’ estates, their creditors, and other parties.” The debtors are not required by the judge’s decision to liquidate the disputed holdings; however, they would need the committee of unsecured creditors’ approval.
Celsius’s interim chief executive officer, Christopher Ferraro, stated in a declaration on February 9 that the debtors anticipated selling the Bitmain coupons for approximately $7.4 million. The coupons, according to the interim CEO, allowed interested parties to purchase Bitmain mining rigs at a discount of 10 to 30 percent on subsequent purchases.
“The Debtors believe that such a price is commensurate with the market and preferable to the Bitmain Coupons expiring worthless in the Debtors’ possession,” Ferraro stated at the time. “While $7.4 million is a significant discount from the Bitmain Coupons’ nearly $37 million face-value, the Debtors believe that such a price is commensurate with the market.” The Debtors anticipate selling the Bitmain Coupons at a substantial discount to their face value as a result of their marketing efforts to sell similar assets.
Following the debtors of the crypto lending company’s presentation of a restructuring plan on February 15, in which Celsius selected NovaWulf Digital Management as a sponsor, Judge Glenn issued his decision. NovaWulf was to offer a direct cash contribution to the newly restructured company of between $45 million and 55 million under the proposed plan.
In the United States, bankruptcy proceedings are being filed by major companies that were affected by the crash of the 2022 market. The cryptocurrency exchange FTX recently issued subpoenas to company insiders, including former CEO Sam Bankman-Fried, who is also the subject of a criminal case in federal court and the subject of scrutiny in bankruptcy court.
More:
EU to increase data privacy of digital coin users
Wyoming passed law banning disclosure of digital asset keys
