Celsius Debtors Release Sale Plan, Choose NovaWulf as Plan Sponsor
Debtors of bankrupt crypto lender Celsius Network have presented a sale plan to the U.S. Bankruptcy Court of the Southern District of New York.
The plan is as part of the overall reorganization plan for Celsius's retail platform and mining business. At the centre of the plan is an in-principle agreement with NovaWulf Digital Management (“NovaWulf”), a digital asset investment firm, making it the plan sponsor.
The Debtors chose NovaWulf as it "provides the best method to distribute the Debtors’ liquid crypto assets and maximize the value of the Debtors’ illiquid assets," the filing said.
The plan was reached in consultation with the official committee of unsecured creditors after running a "comprehensive" sale process which included six bids for the retail platform, and three bids for the mining operation. The next step will be to finalize a binding agreement to designate NovaWulf as the successful bidder.
According to the plan, NovaWulf will make a direct cash contribution of $45 million -$55 million to NewCo, a term used a describe a corporate spin-off before it is assigned a final name.
NewCo will be a regulatory-compliant public, reporting company 100% owned by Earn creditors, all of whom will receive a significant distribution of liquid crypto, with 1 Convenience Class of creditors receiving 70% recovery of their funds.
This is a developing story...