{"id":578575,"date":"2022-10-20T23:37:12","date_gmt":"2022-10-20T22:37:12","guid":{"rendered":"https:\/\/en.ethereumworldnews.com\/?p=578575"},"modified":"2022-10-20T23:37:29","modified_gmt":"2022-10-20T22:37:29","slug":"celsius-investment-funds-and-customers-to-fight-over-who-gets-to-cash-in-on-companys-assets","status":"publish","type":"post","link":"https:\/\/en.ethereumworldnews.com\/celsius-investment-funds-and-customers-to-fight-over-who-gets-to-cash-in-on-companys-assets\/","title":{"rendered":"Celsius Investment Funds And Customers To Fight Over Who Gets To Cash In On Company\u2019s Assets"},"content":{"rendered":"\n<ul><li>Celsius investors want the proceeds from the sale of the company\u2019s remaining valuable assets.&nbsp;<\/li><li>The Creditors Committee believes that it has the right to cash in the payment from sales.&nbsp;<\/li><li>Investors have submitted a motion to appoint an official preferred equity committee.<\/li><li>The presiding judge has agreed to the U.S Trustee\u2019s proposal to appoint a fee examiner.&nbsp;<\/li><\/ul>\n\n\n\n<p><\/p>\n\n\n\n<p>Some key developments have come out during the latest bankruptcy hearing of the Celsius Network, which was held earlier today.&nbsp;<\/p>\n\n\n\n<p>Per&nbsp;<a target=\"_blank\" href=\"https:\/\/cases.stretto.com\/public\/x191\/11749\/PLEADINGS\/1174909232280000000006.pdf\" rel=\"noreferrer noopener nofollow\">court filings<\/a>, attorneys appearing for investors of the defunct crypto lender, including Canada-based pension fund CDP Investissements Inc and venture capital Westcap Management, have asserted that the proceeds from the sale of \u201cvaluable assets\u201d are for the investors to claim.&nbsp;<\/p>\n\n\n\n<p>In response to this, the attorney for the Official Committee of Unsecured Creditors (UCC), Gregory Pesce, has&nbsp;<a target=\"_blank\" href=\"https:\/\/cases.stretto.com\/public\/x191\/11749\/PLEADINGS\/1174910132280000000092.pdf\" rel=\"noreferrer noopener nofollow\">argued<\/a>&nbsp;that the Celsius\u2019 account holders i.e the customers have the right to claim the proceeds from sales involving any of Celius\u2019 legal entities. Pesce cited the company\u2019s terms of use while making this argument.<\/p>\n\n\n\n<p>The bankrupt lender\u2019s mining business, its loan portfolio, and a wholly-owned subsidiary called GK8 are the assets at the center of this debate.<\/p>\n\n\n\n<p>Celsius\u2019 mining business was in the&nbsp;<a target=\"_blank\" href=\"https:\/\/en.ethereumworldnews.com\/celsius-owes-5-4-million-core-scientific\/\" rel=\"noreferrer noopener\">news<\/a>&nbsp;last week over its failure to repay $5.4 million owed to crypto mining and hosting firm Core Scientific.&nbsp;&nbsp;<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2><strong>Committee for preferred equity holders of Celsius<\/strong><\/h2>\n\n\n\n<p>Investors of Celsius believe that the existing creditors&#8217; committee is largely made up of the lender\u2019s customers whose funds came into play at a relatively later stage. The investors have alleged inadequate representation of the interests of stockholders.&nbsp;<\/p>\n\n\n\n<p>To that end, Dennis Dunne, counsel for Series B preferred equity holders, has requested the presiding judge Martin Glenn to appoint an official committee dedicated to the preferred equity holders. A ruling on this matter will be made at a later date.&nbsp;<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2><strong>Appointment of a fee examiner<\/strong><\/h2>\n\n\n\n<p>Addressing the court-appointed U.S Trustee\u2019s proposal, Judge Glenn has&nbsp;<a href=\"https:\/\/www.bankruptcompanynews.com\/celsius-network-limited-court-takes-bidding-procedures-and-preferred-equity-committee-appointment-motions-under-submission-will-order-appointment-of-fee-examiner\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">agreed<\/a>&nbsp;to appoint Christopher Sontchi, a retired bankruptcy judge, as a fee examiner for the fee review process and to monitor the professional fees involved in the proceedings.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\"><p>\u201cI view my role here to keep an eye on costs\u2026 In this case, there\u2019s so many moving parts, rabbit holes.\u201d said Sontchi.<\/p><\/blockquote>\n\n\n\n<p> The examiner will be assisted by Katherine Stadler of Godfrey &amp; Kahn, S.C, for the fee review process.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Investors and customers of bankrupt crypto lender Celsius are involved in a court tussle over who should benefit from sale of the company&#8217;s assets.<\/p>\n","protected":false},"author":62,"featured_media":578577,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[17,108120,22,1100,2],"tags":[108610,2113],"_links":{"self":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/578575"}],"collection":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/comments?post=578575"}],"version-history":[{"count":3,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/578575\/revisions"}],"predecessor-version":[{"id":578579,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/578575\/revisions\/578579"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/media\/578577"}],"wp:attachment":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/media?parent=578575"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/categories?post=578575"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/tags?post=578575"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}