Celsius Creditors Witness Efficient Distribution Process Post-January Payouts
The latest report from the bankruptcy administrator revealed that Celsius has disbursed over $2.53 billion to approximately 251,000 eligible creditors. This amounts to around two-thirds of the total eligible creditors and covers nearly 93% of the total value, according to a recent court filing.
The disbursements were made in both cryptocurrency and cash, with all funds valued at prices as of January 16. However, there are still around 121,000 eligible creditors who have not yet claimed their payouts, with an average claim of about $1,500 per creditor. Among this group, approximately 64,000 creditors are owed less than $100 each, while another 41,000 have claims between $100 and $1,000.
Despite the significant progress in distributing funds, about 12,000 creditors are still awaiting their share from the bankruptcy distribution process. The delays are primarily attributed to certain claims being held back and missing essential information in creditor accounts, as highlighted by the administrator.
Celsius Completes $3 Billion Distribution as Bankruptcy Resolution Nears
Following its emergence from Chapter 11 bankruptcy earlier this year, Celsius successfully finalized its reorganization plan, which involved distributing over $3 billion in cryptocurrency and fiat currencies to creditors. The completion of these distributions signals the impending conclusion of the bankruptcy proceedings as outlined in the court-approved reorganization plan.
The efficient distribution of funds to creditors commenced in January and has seen rapid progress since then. Within the first two weeks of the payout initiation, creditors received around 65% of the total funds, equating to approximately $1.7 billion. By the end of the first month, nearly 80% of the total amount, approximately $2 billion, had been successfully disbursed to eligible creditors.
With the majority of distributions now finalized, Celsius is on track to close the chapter on its bankruptcy proceedings. The successful completion of the $3 billion distribution underscores the company's commitment to fulfilling its obligations to creditors and marks a significant milestone in its financial restructuring process.
As Celsius continues to navigate the aftermath of its bankruptcy reorganization, the swift and efficient distribution of funds to creditors reflects the company's dedication to addressing its financial challenges and emerging stronger from the restructuring process.
