Crypto Lender Celsius To Be Acquired By Novawolf, Exiting Chapter 11

Crypto lender Celsius, which filed for bankruptcy in July 2022, announced it would be acquired by Novawolf Digital Management and the company was selected from over 130 bids and Celsius called the proposed acquisition ” described as “value-maximizing inference”.
Celsius’ unsecured creditors’ committee also tweeted about its deal on Wednesday, and it said the reorganization plan would “distribute liquid crypto to all account holders,” adding that the plan would create a “litigation trust” and ” Newco” will provide creditors with equity in a new company that will hold illiquid assets such as mining. Celsius customers who have high account balances (over $5,000) will receive funds from the company’s remaining assets after meeting smaller accounts. For claimants with small account balances (less than $5,000), Newco will certainly create a “facilitated class” that will exclusively distribute assets moved to the public, such as bitcoin and Ethereum. Attorneys Ross Kwanstenit and Patrick Nash explained that “the proposed Novawolf transaction provides the basis for a potential settlement with respect to the debtors’ customer debt portfolio”. The Committee of Unsecured Creditors commented that “certain documents” of the deal are being finalized. In addition, the company plans to hold a Twitter Space event soon to provide updates on the acquisition, and the committee emphasizes that Newco will be a regulatory-compliant, publicly reporting company that will be 100% owned. Ownership will certainly rest with the Celsius Earn claimants. The Committee of Unsecured Creditors stated that, “Its ‘common’ equity will be provided in tokenized form and will trade on the Provenance blockchain through an SEC-registered broker-dealer and alternative trading system”.


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