Celsius Network Chooses Fahrenheit LLC to Manage NewCo in Bankruptcy Plan
Celsius Network's Strategic Move in Bankruptcy Proceedings
Celsius Network LLC has embarked on a significant step in its bankruptcy proceedings by selecting Fahrenheit, LLC to manage a new entity, NewCo. This decision followed a competitive court-supervised auction where Fahrenheit emerged as the successful bidder. NewCo will be entirely owned by Celsius' creditors, marking a pivotal shift in the company's restructuring efforts.
Role of Fahrenheit, LLC
Fahrenheit, LLC, a consortium including US Bitcoin Corp., Arrington Capital, Proof Group, Steven Kokinos, and Ravi Kaza, will bring essential capital and expertise to NewCo. This strategic alliance aims to rejuvenate Celsius' operations, particularly its dormant mining activities, ensuring a sustainable future for the company.
Key Components of the Chapter 11 Plan
A major aspect of the Chapter 11 plan is the distribution of Celsius' liquid cryptocurrency to account holders. This distribution is set to occur soon after the plan's effective date, offering significant restitution to creditors. Additionally, the plan addresses settlements with the Custody and Withhold groups, demonstrating a comprehensive strategy for creditor compensation.
Establishment and Management of NewCo
NewCo, a publicly traded entity, will manage various illiquid assets, including Celsius' institutional loan portfolio, mining business, and alternative investments. Account holders will retain full ownership of NewCo's equity, subject to potential dilution due to management fees allocated to Fahrenheit.
Revitalization of Mining Operations
The plan includes provisions to reactivate Celsius' dormant mining operations. NewCo will oversee the expansion of these operations, potentially creating new revenue streams and enhancing creditor returns.
Community Acknowledgment
The crypto community has expressed gratitude toward Simon Dixon, whose "stalking horse" bid significantly increased creditor recovery. This collective appreciation highlights the collaborative effort to maximize outcomes for Celsius' creditors.
This strategic partnership with Fahrenheit LLC and the establishment of NewCo symbolize a new chapter for Celsius Network, focusing on creditor recovery and operational resurgence.
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