👉👉👉 Celsius Loan Creditors Consider Appeal Against Restructuring Plan Over Alleged Unfair Treatment
Creditors who lent funds through Celsius, a #bankrupt #cryptocurrency lender, are expressing dissatisfaction with the proposed restructuring plan, citing concerns about its fairness and treatment of their claims.
Reports indicate that these creditors believe the current plan favors certain creditors over others, potentially resulting in lower recoveries for users of Celsius loan services.
Key objections to the restructuring plan include perceived disparities in the allocation of funds. Critics argue that the court's decision to allocate $225 million for company capital rather than repaying bonds is unjust, highlighting discrepancies in recovery rates among different creditor groups.
Creditors who provided loans through Celsius are considering filing appeals against the plan, citing unfair treatment. The Bankruptcy Code imposes strict deadlines for appeals, typically requiring filing within 14 days of the judgment. However, extensions may be possible under certain circumstances.
One of the main grievances from loan creditors is the unequal treatment between users of Celsius Earn and Celsius Loan services. Earn creditors reportedly received higher recoveries compared to loan creditors, leading to dissatisfaction among the latter.
Another concern is the allocation of bankruptcy estate funds to capitalize a new #Mining entity instead of enhancing creditors' recoveries. Loan creditors feel their interests are not being adequately addressed in this decision.
The uncertainty around the restructuring plan and potential appeals raises questions about creditors' crypto holdings' true value and their return process. Creditors are seeking legal advice to challenge the plan's fairness, which could impact the bankruptcy case and the broader #CryptoCommunity .
