Chris Ferraro, the interim CEO of Celsius, conveyed his anticipation for a resolution in the bankruptcy saga that satisfies all involved parties, emphasizing the company’s dedication to delivering the best possible outcome.
On May 25, Fahrenheit emerged as the winning bidder for Celsius’ assets, offering around $2 billion. As per the deal, assets will be allocated among companies within the Fahrenheit consortium, including Arrington Capital.
According to the outlined agreement, the newly-formed entity would pocket approximately $500 million, while US Bitcoin Corp would venture into constructing innovative mining facilities, including a sizeable 100-megawatt plant.
Bright Prospects for Restructuring
The majority of crypto analysts and observers view the company’s proposed restructuring positively. However, the ultimate decision rests with the creditors.
Under the proposed arrangement, creditors are set to receive compensation in various forms: Bitcoin (BTC) and Ether (ETH), equity stakes in the nascent company, and confiscated funds from Alex Machinsky, the former CEO and founder.
Post-bankruptcy and the subsequent acquisition of assets by Fahrenheit, the company intends to proceed with litigation against Machinsky, accusing him of misrepresenting the firm’s token value and misleading investors.
Fahrenheit is set to invest $50 million in the revamped company, aiming for a listing on the tech-centric Nasdaq, offering shares to users as a component of the bankruptcy settlement.
Given the circumstances leading to Celsius’ bankruptcy filing last year, the present arrangement seems to offer a reassuring prospect for all involved parties, especially the anxious creditors awaiting the recovery of their assets.