Celsius Network Distributes $127 Million to Creditors in Bitcoin
Celsius Network has initiated its second distribution round to creditors, totaling $127 million. This follows an earlier distribution of approximately $3 billion in crypto and fiat currency after a successful reorganization plan vote.
The latest distribution targets eligible creditors impacted by Celsius' collapse and Chapter 11 bankruptcy filing, which paused withdrawals prior to reorganization efforts.
Celsius Implements Changes To Second Distribution
Court documents indicate that funds for this distribution were converted from cash received from Litigation Administrators into Bitcoin (BTC) for creditors with approved claims. This conversion aims to streamline the distribution process and reduce administrative tasks.
Each eligible creditor will receive a cumulative distribution of about 60.4% of their claims' value as of the petition date. The BTC for this distribution is based on a weighted average price of $95,836.23, reflecting the purchase price for this purpose.
The distribution ensures creditors receive amounts in either cash or liquid cryptocurrency. If a creditor was to receive a distribution via Coinbase but did not get it by the designated date, the firm will hold the liquid crypto for that creditor and convert it to cash when suitable.
Bankruptcy Challenges
Documents reveal some creditors received initial distributions at different recovery rates—57.87% for some and 57.65% for others. Those who received higher initial distributions will see reductions in their second distribution to rectify discrepancies.
Eligible creditors should ensure their distribution information is current, particularly if changing their distribution agent. For issues receiving funds, they can create a Customer Care Ticket for assistance.
Celsius continues to manage the complexities of its bankruptcy proceedings, which include ongoing litigation that may impact certain creditors' eligibility for distributions.
Currently, the native token, CEL, is trading at $0.23, reflecting a 1% increase over the last 24 hours. CEL has not seen significant upward movement in the past three weeks. Year-to-date, the token is down 2%, and there is a 97% gap from its all-time high of $8 reached in June 2021 before the company's collapse.
Featured image from DALL-E, chart from TradingView.com.