Key takeaways:
- The debtor has submitted a disclosure document for a joint Chapter 11 reorganization plan.
- The Debtor, the Creditors Committee, the Special Borrower Group, and a few Earnings creditors will mediate before Judge Wiles on July 17.
The debtor has submitted a disclosure document for a joint Chapter 11 reorganization plan, according to an official tweet from the Celsius Unsecured Creditors Committee.
On August 10, a hearing will be held to go through the disclosure statement. The court will determine at this hearing whether the statement has enough details for creditors to vote on the plan.
The court will use the hearing as an opportunity to assess whether the disclosure statement appropriately alerts creditors to the proposed plan. It will also discuss the debtor’s voting rights regarding the scheme. Additionally, a confirmation hearing will be planned to talk about the approval of the proposal, with a suggested date of September 29.
The Debtor, the Creditors Committee, the Special Borrower Group, and a few Earnings creditors will mediate before Judge Wiles on July 17. The goal of this mediation is to discuss how planned earnings are handled in compared to applying for a loan. Regarding the fair distribution of asset value among creditors, the parties aim to come to an understanding.
The Debtors, the Committee, and Fahrenheit Corporation intend to hold a Twitter Space event on July 19 to further debate the Reorganization Plan. Stakeholders will have the chance to participate in a public debate and learn more about the specifics and implications of the plan at this virtual meeting.
The forthcoming activities represent critical turning points in Celsius’s ongoing bankruptcy proceedings. The participation of numerous parties, such as the court, debtors, creditors committee, and other interested parties, emphasizes the group effort to solve the financial situation and work towards a just resolution.
All interested parties are encouraged to actively participate in discussions and hearings about Celsius‘s reorganization plan as the legal process progresses, stay updated on developments, and follow developments. The result of these actions will determine the company’s destiny and have an effect on the rights and interests of its creditors.
According to a recent Bloomberg report, investigators discovered that Celsius broke rules and purposefully misled investors when Mashinsky was the company’s CEO. Celsius and Mashinsky could be subject to legal action if the CFTC commissioners accept the investigation’s findings.
