The Celsius Network committee of unsecured creditors has put forward a filing to sell the company to NovaWulf Digital Management.
Plan To Sell Off Celsius Assets
A filing has been presented to the U.S. Bankruptcy Court of the Southern District of New York, in which a proposed sale of Celsius’s liquid and illiquid assets would be made to NovaWulf Digital Management.
As part of the deal, NovaWulf would make a cash contribution of $45 million to $55 million to NewCo (a holding name until a new name can be assigned).
The plan is that the new company would be 100% owned by Earn creditors. All of these creditors would receive a liquid amount of crypto. Those with less than $5,000 would have most of their funds returned, while the rest would become shareholders of the new company which would eventually be listed on a Stock Exchange.
According to an article on The Block, NovaWulf would manage the new company, with its CEO Jason New already experienced in helping to run “distressed and special teams”. Other executive members of NovaWulf also have experience of such a situation.
A Comprehensive Process
Another article on Coindesk reports that a process, that included the Debtor’s advisors, has involved the contacting of more than 130 interested parties and has included talks with 40 potential bidders.
It stated that the process had reduced the candidates down to 6 bids for the retail platform, and 3 for the mining operation. The next step is reported to be a final and binding agreement with NovaWulf which will see it confirmed as the successful bidder.
Filing To Recover Assets From Former CEO
In a further development, a separate filing was made by the official committee of Celsius’s unsecured creditors, which seeks to recover millions of dollars in value which it says were illicitly transferred by former CEO Alex Mashinsky, his wife, and other former Celsius executives.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.