Celsius Network to Release Crucial Restructuring Plan Info on April 12 – Will It Affect Crypto Investors?

In the Brief:

  • Celsius Network will reveal its restructuring plan in a filing on April 12.
  • The plan follows its Chapter 11 filing last December.
  • NovaWulf is set to buy Celsius in a deal worth $100m, with up to $30m from NovaWulf going towards debtor-in-possession financing.
  • Celsius will file a disclosure statement concerning the proposed plan, allowing creditors to vote on it.

3 - 5 minute read

Celsius Network, the cryptocurrency lending platform that filed for Chapter 11 bankruptcy protection in December 2022, is set to disclose information about its restructuring plan in a filing that will be made on April 12. The filing, which is aimed at providing adequate information to claim holders, is a significant step forward in the process of restructuring and will allow creditors to vote on the proposed plans. The restructuring plan is being sponsored by NovaWulf, and the disclosure statement will provide claim holders with more detailed information about the plan and what it entails.

In December 2022, Celsius Network filed for Chapter 11 bankruptcy protection after experiencing a liquidity crisis that left the platform unable to meet its obligations to its customers. At the time, the company said that it would continue to operate its lending and borrowing services while it worked to restructure its debt and operations.

The bankruptcy was a blow to Celsius, which had been experiencing rapid growth over the previous year. The company had been hailed as one of the most promising new players in the cryptocurrency lending space, and its platform had attracted a large number of users looking to earn interest on their crypto assets. However, Celsius had also come under fire for its opaque business practices and lack of transparency in its operations.

The Proposed Restructuring Plan

Under the proposed restructuring plan, NovaWulf will acquire Celsius Network in a cash and stock deal worth more than $100 million. According to court filings, NovaWulf has committed to providing up to $30 million in debtor-in-possession financing to Celsius to support its operations during the bankruptcy process. NovaWulf has also said it plans to invest up to $100 million in Celsius Network to support its growth and expansion plans.

The proposed restructuring plan has received support from the official committee of unsecured creditors appointed by the bankruptcy court, which represents the interests of all unsecured creditors in the case. The committee has said that the plan offers the best chance for creditors to recover as much of their claims as possible.

The Importance of the Disclosure Statement

The disclosure statement that Celsius Network will file on April 12 is a critical part of the bankruptcy process. The statement will provide claim holders with detailed information about the proposed restructuring plan, including how it will impact their claims, what they can expect to receive, and what risks they may face. These disclosures are intended to help claim holders make informed decisions about whether to vote in favor of the plan or not.

For traders and investors in Celsius Network, the disclosure statement will be a crucial document to review carefully. While the restructuring plan has initially received support from the creditor committee, there may be risks and potential drawbacks that are not immediately apparent. Traders and investors should conduct their own due diligence and review the disclosure statement to determine if they want to support the plan.


Celsius Network’s Chapter 11 bankruptcy case has been closely watched by traders and investors in the cryptocurrency community. The company’s rapid rise and fall have raised important questions about the risks and potential rewards of investing in crypto lending platforms. The proposed restructuring plan, which is set to be disclosed in a filing on April 12, will provide more information about the future of Celsius Network and what investors can expect. Traders should review the disclosures carefully and seek professional advice before making any investment decisions.

Disclaimer: The content in this article is provided for informational purposes only and should not be considered as financial or trading advice. We are not financial advisors, and trading carries high risk. Always consult a professional financial advisor before making any investment decisions.

Leave a Reply

Your email address will not be published. Required fields are marked *