Here’s How Celsius Will Redistribute Assets To Its Creditors To Recover
Defunct Celsius Network has its recovery distribution plan, shared by its decentralized community group on Twitter, as a part of its ongoing restructuring efforts. With its altcoin liquidation plan scheduled on July 01st, they will distrbute liquid cryptocurrencies to creditors, especially Bitcoin and Ethereum, marking a significant step in Celsius Network’s commitment to maximize value for its stakeholders.
Celsius Recovery Distribution Plan
Celsius Network has devised a comprehensive recovery distribution plan that aims to provide maximum returns to its creditors. Under this plan, the majority of creditors will receive distributions in the form of three primary assets: liquid cryptocurrencies (BTC and ETH), NewCo Common Stock, and Litigation Proceeds.
Claims will be listed in U.S. Dollars (based on Cryptocurrency prices on the Petition Date) on your Ballot and not in the types or amount of Cryptocurrency associated with your Claims. Earn Creditors will get 36.4% of their liquid cryptocurrencies based on the USD value on petition date (July 13, 2022).
Earn Creditors, a particular group within the creditor base, will receive a recovery based on the value of their liquid cryptocurrencies on the petition date, July 13, 2022. Since it set at at 36.4% of the USD value, the subsequent increase in Bitcoin and Ethereum prices by approximately 1.5x and 1.6x respectively means that the in-kind recovery for Earn Creditors will amount to around 24.2% and 22.7% based on current market prices.
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Asset Distribution Details
As stated, one significant aspect of Celsius Network’s recovery distribution plan is the allocation of liquid cryptocurrencies to creditors. The distribution percentages for different types of creditors are as follows:
- Holders of Retail Borrower Deposit Claims: 86.9%
- Convenience Claims: 70%
- General Earn Claims: 69.7%
- General Custody Claims (accepting Custody Settlement): 72.5% of Cryptocurrency coins
- Withhold Claims: 74.2%
CoinGape also reported the list of altcoins to be sold off on 1st of July, which includes ADA, MATIC, LTC, AAVE, BNB SOL etc. Celsius Network’s decision to liquidate altcoins held by its customers and convert them into Bitcoin and Ethereum starting from July 1st marks a significant shift in their asset portfolio. The establishment of NewCo and the subsequent distribution of assets to creditors will add on in restructuring their defunct network.
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