Celsius valuation advisor approves value of debtors’ assets and liabilities

Joel E. Cohen, a mathematician and biologist representing Celsius Networks valuation consultant Stout Risius Ross, LLC, verified the precision of the fair worth of particular of the debtors assets and liabilities since May 31, 2023 Following months of back and forth, most Celsius financial institutions recently enacted favor of a plan to see approximately $2 billion worth of Bitcoin (BTC) and Ethereum (ETH) went back to creditors.The ballot results are in! Over 95% of financial institutions throughout all eligible classes voted to accept the Plan, a testimony to our collaborative efforts during Chapter 11. https://t.co/9Z5xlBhNts @CelsiusUcc @FahrenheitHldg.– Celsius (@CelsiusNetwork) September 25, 2023.

Two days after achieving consensus around Celsuis reorganization strategy, a Sept. 28 court filing validated the accuracy of the value of debtors liabilities and possessions. Stout performed the evaluations of cryptocurrency possessions, loans and alternative financial investments. Summary of conclusions supplied for Celsius Networks valuation report. Source:  cases.stretto.com In the statement provided at the New York insolvency court, Cohen explained the methodologies used in the valuation analysis, and concluded:” Based on my work carried out and the info and methodologies considered, I believe the Valuation Report properly reflects the reasonable value of specific of the Debtors properties and liabilities as of May 31, 2023.” According to a disclosure declaration submitted on Aug. 17, approximately $2 billion will be rearranged among creditors and the strategy will also distribute equity in a brand-new company, momentarily dubbed” NewCo.” Related: SEC raises issues over Coinbase in objection to Celsius restructuring planSporting a comparable scenario, bankrupt cryptocurrency lending platform BlockFis liquidation strategy got approval from the New Jersey insolvency court. Sept. 26 court filing in the personal bankruptcy case of BlockFi. Source: KrollThe payment amount received by BlockFis unsecured creditors will mainly depend on whether BlockFi succeeds in its legal battle against FTX and other bankrupt cryptocurrency firms.Magazine: Blockchain investigators: Mt. Gox collapse saw birth of Chainalysis

Other Questions People Ask

What role did the Celsius valuation advisor play in approving the value of debtors’ assets and liabilities?

The Celsius valuation advisor, represented by Joel E. Cohen from Stout Risius Ross, LLC, was instrumental in verifying the fair value of the debtors' assets and liabilities as of May 31, 2023. Cohen utilized specific methodologies to assess the cryptocurrency holdings, loans, and other financial investments of Celsius Networks. His validation was crucial in establishing a foundation for the reorganization plan that aims to return approximately $2 billion to creditors.

How did the approval of the Celsius valuation advisor impact creditors?

The approval from the Celsius valuation advisor significantly impacted creditors by facilitating a plan that allows for the return of around $2 billion worth of Bitcoin and Ethereum. With over 95% of creditors voting in favor of the plan, this consensus reflects a collaborative effort during the Chapter 11 proceedings. The valuation report provided by Cohen ensured that creditors could trust the distribution process of both assets and equity in the newly proposed company, "NewCo."

What methodologies did the Celsius valuation advisor use to assess assets and liabilities?

Joel E. Cohen, as the Celsius valuation advisor, employed various methodologies to evaluate the assets and liabilities of Celsius Networks. His analysis included a thorough examination of cryptocurrency assets, loans, and alternative financial investments to ensure accuracy in the valuation report. This meticulous approach was essential for establishing a fair value that would guide the restructuring plan and reassure creditors about the process.

What were the outcomes following the Celsius valuation advisor's report on debtors’ assets and liabilities?

Following the Celsius valuation advisor's report, a court filing on September 28 validated the accuracy of the debtors' liabilities and assets. This validation was pivotal in moving forward with a reorganization strategy that aims to redistribute approximately $2 billion among creditors. The successful vote from over 95% of creditors demonstrates strong support for the plan, which also includes equity distribution in a new entity.

What is the significance of the Celsius valuation advisor's findings for future bankruptcy cases?

The findings from the Celsius valuation advisor hold significant implications for future bankruptcy cases, particularly in the cryptocurrency sector. By establishing a clear and accurate valuation of assets and liabilities, it sets a precedent for transparency and trust among creditors. Additionally, it highlights the importance of employing expert advisors like Stout Risius Ross in navigating complex financial restructurings, which can ultimately lead to more favorable outcomes for all parties involved.