Celsius Delays Disclosure Statement Citing Ongoing Talk with Bidders

According to a court document dated April 12, the bankrupt crypto lender Celsius has extended the deadline for its disclosure statement by two weeks due to the ongoing discussions with bidders. David Adler, a crypto lawyer with a bankruptcy law firm, shared snippets of the new court filling with the crypto community early today.

#CelsiusBankruptcy #CelsiusNetwork Breaking News — Celsius Disclosure Statement deadline extended to April 28th because of ongoing discussions with other bidders. https://t.co/Jq8DCk51XH pic.twitter.com/jLMcJbhujb

— David Adler (@DavidJAdler1991) April 13, 2023

Notably, the Celsius debtors said in a message to users dated April 7 that they would submit a disclosure declaration on April 12. According to a court document filed on March 31 in the US court, the statement was intended to give claim holders adequate information so they could vote on the NovaWulf-sponsored restructuring plan.

Last week, we filed our Chapter 11 Plan of Reorganization (“the Plan”) with the support of the
Committee and the Plan Sponsor, NovaWulf. You can find the Plan here:https://t.co/RY95ncZSl8

— Celsius (@CelsiusNetwork) April 7, 2023

Furthermore, the plan will also include facts about the circumstances that led up to Celsius’ bankruptcy, expected recovery for certain stakeholders if the restructuring plan is accepted, and answers to frequently asked questions. Additionally, the bankruptcy court will hold a hearing to approve the disclosure statement, followed by a vote on the plan in May.

According to a report early this month, Celsius negotiated new terms with retail borrowers and creditors. The report suggested that retail users who withdrew less than $100k and agreed to the plan will not face a clawback.

In contrast, retail users who took between $100k and $250k can settle 27.5% of their funds in USD, Ethereum, or Bitcoin. However, the litigation trust will pursue those who withdrew more than $250k on a case-by-case basis.

Source