1/9) Here is my prediction on the next steps with @CelsiusNetwork Chapter 11. I will update you if my opinions change. Come back at the end of this process & judge my forecasts.
2/9) Like @investvoyager the debtor will release a reorg. plan that won’t get past regulators & regulators will file motions to reject the plan as it will involve $CEL & assume #DEX makes it exempt from securities laws. You may want it, but regulators don’t. They will object.
3/9) This will drive the vultures into a bidding process where the vultures will try & buy the assets we paid for without our consent & FTX & TradFi will give us pennies on the dollar. It will be a lot worse for creditors than @investvoyager due to size of hole.
4/9) Creditors will vote against it & we demand a reorg. plan organized by the @CelsiusUcc that complies with securities laws & puts creditors first that looks similar to #DepositorsFirst strategy I originally presented to @CelsiusNetwork prior to Chapter 11
5/9) I am happy to speed up by working with @CelsiusNetwork at Stage 1 & create a mega reorg. where @CelsiusNetwork assets are used for creditors with securities compliance from @BankToTheFuture & lending compliance from @SALTLending & you get revenue securities, equity & debt
6/9) If #Celsius want to play the game, burn more cash & risk Chapter 7 then we will wait till Stage 3 after creditors reject the bid & opt for community reorg. headed by @CelsiusUcc if @CelsiusNetwork play the game for too long, but it will cost us a lot of money & risk.
7/9) IMHO - best & fastest path is object to exclusivity extension if we don’t see a compliance-centered reorg. from @CelsiusNetwork that gives creditors benefit to all assets plus equity in a compliant company. We can then skip the bid circus & move to step 3 before cash burnt
8/9) How much do we burn given that @CelsiusNetwork runs out of funds by end of year & regulators won’t let them sell our assets (A good thing as we want them to be used for us) whilst examiner releases pre-petition scans that risk forcing Chapter 7 cases.stretto.com/public/x191/11…
9/9) We have to win this game for the sake of all victims. Avoid Chapter 7. Reorg. in a way that regulators are most likely to agree to & ensure all #Celsius assets are used to benefit creditors only. Give creditors equity in a promising compliant company that can survive.
Got questions? What will happen this week? Set a reminder for my upcoming Space! twitter.com/i/spaces/1zqKV…
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