HOBOKEN, NJ–(BUSINESS WIRE)–Celsius Network (“Celsius” or the “Company”) today announced that it has initiated voluntary Chapter 11 proceedings to provide the Company with an opportunity to stabilize its business and complete a comprehensive restructuring that maximizes value for all stakeholders. To implement the restructuring, the Company and certain of its subsidiaries have filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code with the United States Bankruptcy Court for the Southern District of New York. (” the tribunal “).
The members of the special committee of the board of directors stated:Today’s filing follows Celsius’ difficult but necessary decision last month to suspend withdrawals, trades and transfers on its platform to stabilize its business and protect its customers. Without a pause, the acceleration of withdrawals would have allowed some customers – those who were the first to act – to be paid in full while leaving others to wait for Celsius to recoup the value of illiquid asset deployment activities. or longer term before receiving a recovery.”
“This is the right decision for our community and our business,” said Alex Mashinsky, co-founder and CEO of Celsius. “We have a strong and experienced team in place to guide Celsius through this process. I am confident that when we look back on the history of Celsius, we will see this as a defining moment, where acting with determination and confidence served the community and strengthened the future of the company.
Celsius to keep running
Celsius has $167 million in cash, which will provide enough liquidity to support certain operations during the restructuring process.
To ensure a smooth transition to Chapter 11, Celsius filed a series of customary motions with the Court to allow the company to continue operating in the normal course. These “day one” motions include demands to pay employees and maintain their benefits without interruption, for which the Company expects to receive court approval. Celsius does not request permission to allow customer withdrawals at this time. Customer complaints will be handled through the Chapter 11 process.
New directors to provide additional leadership and expertise
David Barse is the founder and managing director of XOUT Capital, an index company, and DMB Holdings, a private family office. Mr. Barse was the CEO of Third Avenue Management for 25 years, a pioneer in fundamental, bottom-up deep value and distressed investing.
Alan Carr is an investment professional with over 25 years of experience building companies, leading complex restructurings and protecting and creating value for stakeholders. Mr. Carr is a founder and managing member of Drivetrain, LLC, a professional trust services firm.
Kirkland & Ellis LLP is acting as legal advisor, Centerview Partners as financial advisor and Alvarez & Marsal as restructuring advisor to Celsius.
Additional information on the restructuring process
Additional information about the Chapter 11 filing, including court documents, is available at https://cases.stretto.com/celsius. Stakeholders with questions can call the company’s claims agent, Stretto, at +1 (855) 423-1530 (U.S.) or +1 (949) 669-5873 (international) or email -email to [email protected]
Founded on the belief that financial services should only do what is in the best interests of customers and the community, Celsius is a blockchain-based platform where membership provides access to organized financial services that are not not available through traditional financial institutions. For more information, visit www.celsius.network.
The statements contained in this document may contain certain forward-looking statements relating to the Company that are based on the beliefs of the management of the Company as well as on assumptions made by the management of the Company and on information currently available to it. These forward-looking statements are, by their nature, subject to significant risks and uncertainties. These forward-looking statements include, but are not limited to, statements relating to the Company’s business prospects, future developments, trends and conditions in the industry and geographic markets in which the Company operates, its strategies, plans, objectives and goals, its ability to control costs, statements relating to prices, volumes, operations, margins, general market trends, risk management and exchange rates.
When used herein, the words “anticipate”, “believe”, “could”, “estimate”, “expect”, “go ahead”, “intend”, “may “, “should”, “plan”, “project”. “, “seek”, “should”, “will”, “would” and similar expressions, with respect to the Company or the management of the Company, are intended to identify forward-looking statements. These forward-looking statements reflect the opinions of the company at the time such statements were made regarding future events and are not guarantees of future performance or developments. You are strongly cautioned that reliance on forward-looking statements involves known and unknown risks and uncertainties. Actual results and events may differ materially from the information contained in the forward-looking statements due to a number of factors, including any changes in laws, rules and regulations relating to any aspect of the Company’s business operations, the economy general, market and economic conditions, including changes in financial markets, changes in or volatility of interest rates, foreign exchange rates, stock prices or other rates or prices, stock and developments in the Company’s competitors and the effects of competition in the insurance industry on the demand for, and prices of, the Company’s products and services, various business opportunities that the Company may or may not pursue, changes in the growth of population and other demographic trends, including mortality, morbidity and longevity rates, levels of persistence, the Company’s ability to id identify, measure, monitor and control risks in the Company’s activities, including its ability to manage and adapt its overall risk its risk management profile and practices, its ability to correctly price its products and services and to build reserves for future benefits and claims, seasonal fluctuations and factors beyond the Company’s control. Subject to the requirements of the Listing Rules, the Company does not intend to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise. Due to these and other risks, uncertainties and assumptions, the forward-looking events and circumstances described herein may not occur in the manner anticipated by the Company, if at all. Accordingly, you should not rely on any forward-looking information or statements. All forward-looking statements contained herein are qualified by reference to the cautionary statements set forth in this section.
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