According to bankruptcy Judge Martin Glenn, the deviation from the previously approved plan is permissible since creditors will not be adversely affected.
Celsius Network has been approved for a second exit route from bankruptcy, moving away from a deal with Fahrenheit consortium for a solely Bitcoin mining company.
According to court filings on Dec. 27, Judge Martin Glenn granted permission to proceed with a second alternative previously approved by Celsius’ creditors, which involves the creation of a public company dedicated solely to Bitcoin mining instead of a company with multiple lines of business managed by the Fahrenheit consortium.
The shift came as the United States Securities and Exchange Commission (SEC) refused to grant the relief required to implement the first option in the bankruptcy exit plan, namely the creation of NewCo. As per the initial plan, NewCo would expand Celsius’ existing mining operations and business activities. It would be managed by the Fahrenheit consortium, made up of several crypto-native persons and organizations, including Proof Group, Arrington Capital and Hut 8.
