Celsius Network is set to make a high-stakes filing with the US Bankruptcy Court for the Southern District of New York later this month, with the documents to include key info on a restructuring plan that involves a crypto voting platform.

April 12 is the date set for the filing from Celsius Network, a crypto lending and borrowing platform that has been at the centre of a complex bankruptcy case since it first filed for Chapter 11 bankruptcy protection back in August.

The eventual filing will seek the court’s final approval of a plan that includes provisions governing how creditors can vote on the plan, in addition to establishing mandatory deadlines for creditor ballots.

In an officially filed document, Celsius Network has requested the court approve a “notice and disclosure statement,” as well as a solicitation and voting procedure. The document — titled “Motion for Entry of an Order,” was signed by the lawyers representing Celsius Network and was filed with the court on March 18.

If approved, the plan would implement a restructuring agreement that was negotiated between Celsius and a bulk of the creditor groups. It would effectively erase all of Celsius’ pre-bankruptcy debt — estimated to be a whopping $460 million — and replace it with a $595 million package of new debt and equity networks.

The news wasn’t received well by all of the creditors, with a number of objections filed in court. In response, the debtor is seeking to implement a crypto voting platform to provide an opportunity for creditors to “vote in favor of the proposed restructuring plan.” The platform will be hosted by Big Blockchain Intelligence Group, which has been working with Celsius to develop a tool that will allow the company’s debt holders to cast their ballots online.

Celsius Network, a leading crypto lender and borrowing platform, is gearing up to make a major filing with the Bankruptcy Court for the Southern District of New York on April 12. The filing will include a restructuring plan that includes a novel voting platform using blockchain technology.

The restructure plan was originally negotiated between Celsius and its creditor groups, with provisions of how creditors can vote and mandatory deadlines for debtor ballots. The debtors are now proposing to implement a platform powered by Big Blockchain Intelligence Group that debt holders can use to cast their votes in favor of the proposed plan.

Creditors have previously filed objections to the plan, but the incorporation of this crypto voting platform appears to be an effective solution to these issues. The plan details that all of the pre-bankruptcy debt — estimated to be around $460 million — will be erased, and replaced with a new package of debt and equity worth $595 million.

Celsius Network believe this solution is the best to communicate with, and manage the votes from, their thousands of creditors all across the globe in a swift and secure manner. It also provides an unprecedented level of transparency and accountability with the voting process, leading to fair and accurate outcomes. During the period between filing and voting, creditors will be given access to the disclosure statements, with all statements and ballots issued, tabulated and reported through one centralized platform.

The voting process and outcomes may set a precedent for future cross border restructurings. As the use of blockchain based voting platforms coincides with the increasing mainstream use of cryptocurrencies, this may pave the way to more debt restructurings being settled using crypto-based solutions in the future.



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