Celsius Network Open For Higher Bids Post NovaWulf Offering
- Celsius Network said on Wednesday that it was in talks with another possible buyer.
- After halting client withdrawals in July, Celsius filed for bankruptcy.
Despite receiving an offer from asset management NovaWulf Digital Management, insolvent crypto lender Celsius Network said on Wednesday that it was in talks with another possible buyer and would continue to seek more offers.
During a hearing in Manhattan’s bankruptcy court, attorney Chris Koenig stated that Celsius is open to stronger proposals and that the firm and its creditors committee met with a possible buyer two days ago to evaluate an alternative proposal.
The New Jersey-based lender requested U.S. bankruptcy judge Martin Glenn, who is supervising Celsius’ Chapter 11, for an extension to file a bankruptcy restructuring plan centered on the NovaWulf agreement, which would pay out consumers with crypto deposits of less than $5,000 and transfer ownership of the firm’s remaining funds to customers with bigger accounts.
NovaWulf Setting the Floor
Celsius requested more time to file for Chapter 11 protection, and Glenn agreed to allow them three more weeks. If everything goes well with the offer from NovaWulf, Celsius will be able to emerge from Chapter 11 bankruptcy by June, less than a year after filing, according to Koenig.
Moreover, Koenig said Celsius plans to give NovaWulf up to $20 million in breakup fees if it goes with a different bidder. NovaWulf has established the floor, so if there is a greater offer, it will be because of that, Koenig added.
After halting client withdrawals in July, Celsius filed for bankruptcy in the United States. According to Celsius’s claims at the time, the company had over 1.7 million registered users and over 300,000 active users with balances of more than $100.