Second Distribution By Celsius Network: Creditors To Receive Bitcoin Valued at $95,000 Each
Once a well-known player in the cryptocurrency lending space, Celsius Network has begun a second round of distributions to creditors worth $127 million. Prior to this, the company had struggled to distribute approx. Cryptocurrency worth $3 billion and fiat currency, launched following a successful vote on its restructuring plan earlier this year.
The latest distributions are to qualified creditors affected by the collapse of Celsius and subsequent Chapter 11 bankruptcy filing, which temporarily halted withdrawals pending restructuring efforts.
Celsius makes changes to second release
according to court documentthe funds for this distribution will be converted from cash received from the litigation administrator into Bitcoin (BTC) for eligible creditors to obtain approved claims. This conversion was made to simplify the distribution process and minimize administrative burden.
Each qualifying creditor will receive cumulative distributions equal to approximately 60.4% of the value of his or her claims as of the filing date. this Bitcoin The allocation for this allocation is based on a weighted average price of $95,836.23, reflecting the price at which Celsius purchased the cryptocurrency for this purpose.
The distribution process is designed to ensure that creditors receive the distributed amount in cash or liquid cryptocurrency. If a creditor plans to receive distributions through the U.S. cryptocurrency exchange Coinbase but not received by the specified date, the company will continue to hold liquid cryptocurrency for the creditor and convert it into cash when appropriate.
Bankruptcy Challenges
Notably, the filings show that some creditors received initial distributions based on different recovery rates — 57.87% for some creditors and 57.65% for others. To correct for this difference, those who obtained higher initial scores distribute Their second allocation will be reduced accordingly.
Eligible creditors are encouraged to ensure that their distribution information is up to date, particularly if they need to change distribution agents. If a creditor is having trouble collecting a claim fundsthey can create a customer service ticket to ask for help.
In addition to this distribution, Celsius asserts that it will navigate the complexities of the bankruptcy process, including ongoing litigation that may affect certain creditors’ eligibility for the distribution.
As of this writing, the company’s native token, CEL, is trading at $0.23, up a modest 1% in 24 hours. Interestingly, CEL is one of the few cryptocurrencies on the market that has not seen a significant upward trend over the past three weeks.
The coin is still down 2% year-to-date, but comparisons to current trading levels and all-time highs are more concerning, with a gap of 97% from the all-time high of $8 reached in June 2021 after the company collapsed Before.
Featured images from DALL-E, charts from TradingView.com
