Hoboken, NJ – (work wire) – Celsius Network (“Celsius” or the “Company”) announced today that it has commenced voluntary actions under Chapter 11 to provide the Company with an opportunity to stabilize its business and complete a comprehensive restructuring transaction that increases value for all stakeholders. To carry out the restructuring, the Company and some of its subsidiaries have filed voluntary petitions for reorganization under Chapter 11 of the US Bankruptcy Code in the US Bankruptcy Court for the Southern District of New York (the “Court”).
The members of the Special Committee of the Board of Directors said:Today’s deposit comes on the heels of Celsius’ difficult but necessary decision last month to temporarily pause withdrawals, swaps and transfers on its platform to stabilize its business and protect its customers. Without pause, accelerating withdrawals would have allowed some clients — those who were the first to act — to pay their full wages while leaving others behind to wait for a percentage value from illiquid or long-term asset spread activities before they could get a recovery.”
““This is the right decision for our community and our company,” said Alex Mashinsky, co-founder and CEO of Celsius. “We have a strong and experienced team to lead Celsius through this process. I am confident that when we look back at Celsius’ history, we will see this as a defining moment, as the business serves the firmness and trust of the community and enhances the future of the company.”
percentage to continue working
Celsius has $167 million in cash on hand, which will provide enough liquidity to support certain operations during the restructuring process.
To ensure a smooth transition to Chapter 11, Celsius submitted to the court a series of customary motions to allow the company to continue operating in the normal course. “Day One” suggestions include requests to pay employees and continue their benefits without interruption, for which the company expects court approval. Celsius does not request permission to allow customers to check out at this time. Customer claims will be processed through the Chapter 11 process.
New managers to provide additional leadership and experience
David Barse is the founder and CEO of XOUT Capital, an index company, and DMB Holdings, a private family office. Mr. Barse has served as CEO of Third Avenue Management for 25 years and has been a pioneer in deep upward core value and distressed investing.
Alan Carr is an investment expert with over 25 years of experience building businesses, leading complex restructurings, and protecting and creating value for stakeholders. Mr. Carr is the founder and managing member of Drivetrain, LLC, a professional credit services company.
Kirkland & Ellis LLP acts as legal counsel, Centerview Partners acts as financial counsel, and Alvarez & Marsal acts as restructuring advisor to Celsius.
Additional information about the restructuring process
Additional information about the Chapter 11 filing, including court documents, can be found at https://cases.stretto.com/celsius. Stakeholders with questions can contact the company’s claims agent, Stretto, at +1 (855) 423-1530 (US) or +1 (949) 669-5873 (international) or email [email protected].
Based on the belief that financial services should only do what is in the best interests of customers and society, Celsius is a blockchain-based platform where membership provides access to coordinated financial services that are not available through traditional financial institutions. For more information, please visit www.celsius.network.
Statements herein may contain certain forward-looking statements relating to the Company that are based on the beliefs of the Company’s management as well as assumptions made by the Company and information currently available to the Company’s management. By their nature, these forward-looking statements are subject to significant risks and uncertainties. These forward-looking statements include, but are not limited to, statements regarding the Company’s business prospects, future developments, trends and conditions in the industry and geographic markets in which the Company operates, and its strategies, plans, objectives and objectives, and its ability to control costs. , data on prices, volumes, operations, margins, general market trends, risk management and exchange rates.
When used here, the words “expect”, “believe”, “could”, “estimate”, “expect”, “proceed”, “intend”, “may”, “should”, “plan”, “project” ,” “seek,” “should,” “will,” “will” and similar expressions, as they relate to the Company or the Company’s management, are intended to identify forward-looking statements. These forward-looking statements reflect the Company’s views at the time this statement was made regarding future events and are not a guarantee of future performance or developments. You are strongly cautioned that reliance on any forward-looking statements involves known and unknown risks and uncertainties. Actual results and events could differ materially from the information in the forward-looking statements as a result of a number of factors, including any changes in laws, rules and regulations relating to any aspect of the Company’s business operations, the general economy, and market and business conditions, including capital market developments. , changes or fluctuations in interest rates, foreign exchange rates, stock or other prices or prices, the actions and developments of the Company’s competitors and the effects of competition in the insurance industry on the demand for, and price of, the Company’s products and services and various business opportunities that the Company may or may not seek to it, changes in population growth and other demographic trends, including mortality, morbidity and longevity rates, persistence levels, and the Company’s ability to identify, measure, monitor and control risks in the Company’s business, including its ability to manage overall risks and adapt its risk profile and management practices, and its ability to properly price its products and services and create reserves for future policy benefits and claims, seasonal fluctuations and externalities of the company’s control. In accordance with the requirements of the Listing Rules, the Company does not intend to update or revise such forward-looking statements, whether as a result of new information, future events, or otherwise. As a result of these and other risks, the uncertainties, assumptions, and forward-looking events and conditions discussed here may not occur in the manner expected by the Company or at all. Accordingly, you should not rely on any forward-looking information or statements. All forward-looking statements herein are qualified by reference to the cautionary statements described in this section.
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