Celsius Unsecured Creditors Submit Disclosure Statement for Chapter 11 Reorganization Plan

Celsius Unsecured Creditors Submit Disclosure Statement for Chapter 11 Reorganization Plan

In a significant development in the ongoing bankruptcy proceedings of Celsius, the committee representing the unsecured creditors has announced the submission of a disclosure statement for a joint Chapter 11 reorganization plan. This disclosure statement, subject to review by the court, serves the crucial purpose of providing essential information to the creditors, enabling them to make informed decisions regarding the plan.

The court has scheduled a hearing on August 10 to evaluate the disclosure statement. During this hearing, the court will carefully assess whether the statement fulfills its intended purpose of adequately informing the creditors about the proposed plan. Additionally, the court will consider the debtor’s right to vote on the plan, adding another layer of scrutiny to the proceedings. Subsequently, a confirmation hearing will be arranged to deliberate on the approval of the plan, tentatively set for September 29.

Prior to the August 10 hearing, on July 17, an important mediation session is planned, presided over by Judge Wiles, involving the debtor, creditors committee, special borrower group, and certain earnings creditors. The aim of this mediation is to address the treatment of Planned Earnings in relation to obtaining a loan. All parties involved hope to reach a mutually agreeable resolution that ensures an equitable division of asset value among the creditors.

To foster further engagement and transparency, the debtors, the committee, and the Fahrenheit corporation have organized a Twitter Space event on July 19. This virtual gathering presents an excellent opportunity for stakeholders to participate in a public discussion, gain clarity on the intricate details of the reorganization plan, and fully comprehend its implications.

The confluence of these upcoming events signifies crucial milestones in the ongoing bankruptcy proceedings of Celsius. The involvement of various stakeholders, including the court, debtors, creditors committee, and other interested parties, underscores the collective commitment to addressing the financial situation and striving towards a fair resolution.

As the legal process unfolds, it is vital for all interested parties to remain informed about the latest developments and actively participate in discussions and hearings concerning Celsius’s reorganization plan. The outcome of these proceedings will significantly shape the future of the company and have far-reaching implications for the rights and interests of its creditors.