- Celsius Network selected NovaWulf as a sponsor for its restructuring plan.
- NovaWulf Digital Management agreed to provide between $45 million and $55 million.
Crypto lender Celsius Network has been seeking all options to increase the value of its assets and restructure its business since filing for Chapter 11 Bankruptcy on July 2023. Today the cryptocurrency lender announced that it agreed to partner with asset management NovaWulf Digital Management to recover from bankruptcy.
Celsius Network attorney Ross Kwasteniet stated at a court hearing in Manhattan on Wednesday that the proposed agreement with NovaWulf should enable Celsius to emerge from Chapter 11 and start returning cryptocurrency to consumers in June.
Agreement Between Celsius Network & NovaWulf
Celsius Network’s Debtors proposed the sale and restructuring plan. Also, it had the full backing of the company’s official committee of unsecured creditors (UCC). The proposal has been approved by creditors and U.S. Bankruptcy Judge Martin Glenn, who is supervising Celsius’ Chapter 11 procedure.
According to the court document, NovaWulf would manage the new firm operations known as “NewCo”. And those assets would be owned by Celsius creditors and managed by NovaWulf under a profit-sharing agreement. Most users expect to recover up to 70% of their funds. Additionally, NovaWulf agreed to provide between $45 million and $55 million in direct cash to organize the new company.
Earn creditors with claims under $5,000 will be placed in a “convenience class” and granted a payout of one-time distribution of liquid crypto in the form of Bitcoin (BTC), Ethereum (ETH), and the stablecoin USDC. Also, Creditors owing more than $5,000 may lower their claim to that amount to join the class.
Additionally, NovaWulf has teamed up with Figure Technologies and the Provenance Blockchain to offer authorized trading and loan services. Further, after a prolonged bear market, the crypto industry trying many ways to recover its trust with new updates and developments.