Celsius Network won’t have official equity committee, court rules

By Sarah Lizee

Olympia, Wash., Oct. 24 – A group of Celsius Network LLC equity holders lost a bid to have an official committee of equity holders, according to documents filed with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, the motion came from Community First Partners, LLC, Celsius SPV Investors, LP, Celsius New SPV Investors, LP and CDP Investissements Inc.

Judge Martin Glenn said equity holders are already adequately represented by existing stakeholders and don’t need additional representation.

He also said the requesting equity holders haven’t met their burden to demonstrate that there is a substantial likelihood of equity recovery.

“Other factors such as the balance of costs and benefits to the estate, as well of the complexity of these Chapter 11 cases, do not weigh in favor or appointing an official preferred equity committee,” Glenn said in a memorandum opinion.

The Hoboken, N.J.-based cryptocurrency lending platform filed bankruptcy on July 13 under Chapter 11 case number 22-10964.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.