- The Lawyers for Celsius called for the Court to appoint a committee that represents assured and confident shareholders.
- The legal team wants to finish up the case as “inappropriately and inquitably skewed in favor of the customers.”
On September 22, 2022 Milbank LLP, an international Law Firm, filed a Notice of Motion with the U.S. Bankruptcy Court in the Southern District of New York. The law firm requested to appoint an “Official Preferred Equity Committee”. As per the filing the equity holders “urgently need their own fiduciary” for the representation in Court with Celsius debtors and an Unsecured Creditors Committee (UCC).
What’s Inside The Court Filing?
As mentioned in the Court filing “The need for a fiduciary to pursue the Equity Holders’ interests is particularly critical when one considers the practical realities of these cases: There are only two groups of real economic stakeholders — the retail customers and the Equity Holders.”
Moreover, “Not only is the UCC laser focused on maximizing value for the customers, without regard for the Equity Holders, but the Debtors also have made it abundantly clear that the UCC is their partner, and these cases are ‘all about the customer.”
As well as, the legal team further added that “An estate fiduciary is needed to take the other side of this dispute before a plan of reorganization is proposed that violates the Bankruptcy Code […] An Official Preferred Equity Committee should be appointed now — and not after the fact — or these cases will be inappropriately and inequitably skewed in favor of the customers to the detriment of the Equity Holders.”
It must be noted that Celsius’s investors accumulated nearly $750 Million in the Series B funding round from November 2021 was one of the last as added by the Shareholders. And in July 2022, the firm filed for Chapter 11 bankruptcy.
On the following filed Motion, the hearing is scheduled on October 6, 2022. On this day the court will decide whether to allow Celsius to sell its stablecoins holdings to generate liquidity to help “fund the Debtors’ operations.”
Source: https://www.thecoinrepublic.com/2022/09/26/lawyers-for-celsius-investors-filed-notice-of-motion/