Celsius’ Successor NewCo Will Be Granted $450M in Digital Assets if Company’s Reorganization is Approved
A new company, NewCo, is set to replace Celsius, which has gone bankrupt. If the court approves the reorganization plan, NewCo will receive $450 million in digital assets and go public on the Nasdaq stock exchange.
During hearings, NewCo representatives announced their plans to start reimbursing customers who had their funds frozen on the crypto-lending platform, which they believe is the best option for reimbursement.
The Fahrenheit Group has been appointed as the manager for NewCo and has committed to investing $50 million in the company.
They will receive dividends in the form of ordinary shares and also take over Celsius’ institutional business and mining division.
In September, 98% of creditors impacted by Celsius’ bankruptcy voted in favor of the reorganization plan, which includes distributing $2 billion in Bitcoin and Ethereum to debtors.
However, the plan still needs to be approved by the US Securities and Exchange Commission. If approved, Celsius will become the first company to successfully revive itself after a string of bankruptcies in 2022.
