In agreement with the terms of its bankruptcy resolution, Celsius has allocated $2 billion in cryptocurrency to a total of 171,672 creditors.
According to a recent court filing by Celsius’s legal team, Kirkland & Ellis, the company has purportedly made significant strides in repaying its creditors since it filed for bankruptcy in 2022. Celsius was a cryptocurrency lending company.
The filing of the document on Friday discloses that Celsius has commenced the process of distributing the cryptocurrency that is outstanding to its creditors, commencing at the conclusion of January.
Having already disbursed $2 billion, the organization is well on its way to distributing an impressive $3 billion worth of cryptocurrency. In addition to 301,338.77 Ethereum (ETH) and 20,255.66 Bitcoin (BTC), this sum compensates 171,672 creditors in total.
This development represents a substantial stride in the direction of resolving the financial distress that precipitated the lender’s declaration of bankruptcy subsequent to the identification of a $1.2 billion shortfall in its balance sheet.
The court document emphasizes Celsius’s endeavors to meet the requirements of its international creditor community. Regarding the deposit of checks issued by U.S. banks in their respective jurisdictions, a number of creditors have voiced apprehension.
As a result, Celsius is of the opinion that providing wire transfers as an alternative method of payment could effectively address the majority of these concerns. This modification showcases the organization’s dedication to enabling a more streamlined repayment procedure for its global creditors.
Additionally, creditors eligible to receive shares from a new mining company formed from Celsius’s remaining assets were notified that Odyssey Transfer and Trust Company, the transfer agent, would be in touch with them via email.
Complex initiatives to rectify the financial inconsistencies that precipitated Celsius’s bankruptcy have characterized the company’s path to insolvency. The company effectively climbed from bankruptcy protection in November, subsequent to its preliminary insolvency petition in 2022.
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