Struggling crypto lending platform Celsius has avoided Chapter 11 bankruptcy with a plan to repay billions of dollars to its creditors.
The controversial crypto company writes in a new press release announced yesterday that it successfully emerged from bankruptcy with the intention of repaying its creditors $3 billion worth of crypto assets and fiat money.
Moreover, Celsius is also planning to launch a new Bitcoin (BTC) mining company – Ionic Digital, Inc. – to be established under the control of its creditors.
According to the press release, the plan was approved by 98% of the company’s account holders and affirmed by the Bankruptcy Court for the Southern District of New York.
“This milestone marks the conclusion of an eighteen-month process during which the company built consensus among a broad range of stakeholders, resolved complex emerging legal issues, fully cooperated with all regulatory investigations and developed and completed the transactions under the plan .”
As Chris Ferraro, Celsius interim CEO and current Chief Restructuring Officer, says:
“Creating the best outcome for creditors by maximizing value and speed has remained at the forefront for Celsius throughout this process. Today, more than 18 months after Celsius halted withdrawals, we have begun distributing more than $3 billion in cryptocurrency, fiat and equity in Ionic Digital to Celsius creditors.”
Celsius’ plan to repay its creditors was initially approved by a judge last November. At the time, the mining company it wanted to give to creditors was called ‘NewCo’ and traded with Ethereum (ETH) instead of BTC.
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Featured image: Shutterstock/Tithi Luadthong