Lawyers for Celsius investors file motion to have their interests represented in court
The legal team asked the court to appoint a committee representing certain shareholders, otherwise the case could end "inappropriately and unfairly in favor of customers."
New
An international law firm representing Celsius investor groups has filed a motion to appoint a panel to represent their interests in the crypto lending firm's bankruptcy case.
In a Thursday filing with the United States Bankruptcy Court in the Southern District of New York, attorneys for the law firm Milbank requested the appointment of an "Official Preferred Stock Committee" to represent certain shareholders of Celsius. According to the filing, the shareholders are "urgently demanding their own fiduciary" to be represented in court alongside Celsius debtors and an unsecured creditors committee, or UCC.
“The need for a fiduciary to defend the interests of shareholders is particularly critical when considering the practical realities of these cases: there are only two groups of real economic actors: the clients of retail and equity holders," the court filing said. "Not only is the UCC laser focused on maximizing value for customers, without regard to equity holders, debtors have also made it clear that UCC is their partner, and these cases are 'all about client. ""
The legal team added:
"An estate trustee is needed to take the other side of this dispute before a plan of reorganization is proposed that violates the Bankruptcy Code [...] A formal Preferred Equity Committee should be named now - not after the fact - or these cases will be improperly and unfairly biased in favor of customers at the expense of equity holders."
Shareholders included investors in Celsius' $750 million Series B funding round from November 2021, one of the last before the company filed for Chapter 11 bankruptcy in July 2022. A hearing on Milbank's motion will be held...
The legal team asked the court to appoint a committee representing certain shareholders, otherwise the case could end "inappropriately and unfairly in favor of customers."
New
An international law firm representing Celsius investor groups has filed a motion to appoint a panel to represent their interests in the crypto lending firm's bankruptcy case.
In a Thursday filing with the United States Bankruptcy Court in the Southern District of New York, attorneys for the law firm Milbank requested the appointment of an "Official Preferred Stock Committee" to represent certain shareholders of Celsius. According to the filing, the shareholders are "urgently demanding their own fiduciary" to be represented in court alongside Celsius debtors and an unsecured creditors committee, or UCC.
“The need for a fiduciary to defend the interests of shareholders is particularly critical when considering the practical realities of these cases: there are only two groups of real economic actors: the clients of retail and equity holders," the court filing said. "Not only is the UCC laser focused on maximizing value for customers, without regard to equity holders, debtors have also made it clear that UCC is their partner, and these cases are 'all about client. ""
The legal team added:
"An estate trustee is needed to take the other side of this dispute before a plan of reorganization is proposed that violates the Bankruptcy Code [...] A formal Preferred Equity Committee should be named now - not after the fact - or these cases will be improperly and unfairly biased in favor of customers at the expense of equity holders."
Shareholders included investors in Celsius' $750 million Series B funding round from November 2021, one of the last before the company filed for Chapter 11 bankruptcy in July 2022. A hearing on Milbank's motion will be held...
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