Celsius Escapes Bankruptcy: Court Approves Restructuring Plan

• The New York Bankruptcy Court has approved Celsius’ restructuring plan.
• Celsius proposes to reorganize the firm into a BTC mining platform and initiate a reimbursement plan for creditors.
• The new firm will be rebranded as ‘NewCo’ and will be managed by the consortium Fahrenheit.

According to recent reports, the New York Bankruptcy Court has approved the bankrupt cryptocurrency firm Celsius’ restructuring plan. After which, customers could recover their funds and receive equity in the new company, a creditor-owned Bitcoin mining company.

In a court order dated November 9, Judge Martin Glenn of the Southern District of New York Bankruptcy Court approved the Celsius creditors’ proposal to restructure Celsius, which would be rebranded to NewCo. Under the proposed plan, the new platform will focus on BTC mining and staking fee earnings. The consortium Fahrenheit LLC will manage the new platform and is expected to acquire a minority stake in NewCo for around $50 million. Fahrenheit will also list the BTC mining company’s stock on Nasdaq.

In July 2022, Celsius filed for Chapter 11 bankruptcy, allegedly affected by the severe crypto winter. The move followed…

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