Celsius Network’s Creditors Committee Approves NovaWulf’s Bid

The Celsius Committee of Unsecured Creditors (UCC) has given approval for the proposed sale of the firm to NovaWulf Digital Management firm. The committee stated in a new court filing that NavaWulf’s deal is the best option for Celsius to exit bankruptcy.

The committee stated that it believes the settlement with NovaWulf will optimize the value of the assets of Celsius because most of the other bids received from other firms contemplated variations of a liquidation plan.

The plan is to establish a new company that will be managed by NovaWulf. According to the details of the proposed sale, smaller creditors would get 70% of their money returned, whereas larger creditors would get tokenized shares in the new company run by NovaWulf.

In addition, a direct cash investment of between $45 million to $55 million would also be made to the new business by NovaWulf. The deal would also shield Celsius from bearing large expenses related to selling off customers’ assets and closing the business.

Meanwhile, the news comes after information was released that some crypto firms including Binance, Bank To The Future, and Galaxy Digital have secretly put out bids for Celsius’ holdings.

Celsius Network Explores Various Bankruptcy Exit Options

Several bankruptcy exit options have been proposed by stakeholders to Celsius for its asset recovery. Last Month, the UCC highlighted a number of recovery options which include the sales of Celsius’ mining business and the transfer of crypto to a third party.

This was after the crypto miner filed for bankruptcy protection in July. Celsius stated that it had up to 100,000 listed creditors at the time and that its assets ranged between $1 billion and $10 billion. The company reiterated that its liabilities are also within this range.

As relating to its bankruptcy exit plan, Celsius Network announced that it intends to sell off its assets to pay its debts and exit bankruptcy. This can include selling off real estate, equipment, and inventory. Based on this, Celsius offered a set of mining equipment for sale to Touzi Capital LLC for a price of $1.3 million.