Debtors to crypto lender Celsius Network are eligible to sell roughly $7.4 million worth of coupons for mining company Bitmain following a ruling by a bankruptcy judge.
In a Feb. 16 court filing, U.S. Bankruptcy Judge Martin Glenn said it was in the “best interests of the Debtors’ property, their creditors and other parties” to allow Celsius debtors to sell their Bitmain coupons. The judge’s ruling does not require the debtors to liquidate the holdings in question, but they would need the approval of a committee of unsecured creditors.
Christopher Ferraro, Acting CEO of Celsius, argued in a Feb. 9 filing, the debtors expected to sell Bitmain coupons for approximately $7.4 million. The coupons allowed interested parties to buy Bitmain mining rigs at a 10% to 30% discount on future purchases, according to the acting CEO.
“While $7.4 million is a significant discount from the almost $37 million face value of Bitmain coupons, Debtors believe that such a price is commensurate with the market and is preferable to Bitmain coupons that expire uselessly and are in the possession of Debtors. Ferraro said in “Based on Debtors’ marketing efforts to sell similar assets, Debtors anticipate that the sale of Bitmain coupons at a significant discount from their face value will be required.”
Judge Glenn’s decision came after debtors of the cryptocurrency lending firm submitted a restructuring plan on Feb. 15 in which Celsius chose NovaWulf Digital Management as a sponsor. In the proposed plan, NovaWulf offered a $45 million to $55 million direct cash contribution to the newly restructured company.
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Credit : cointelegraph.com
