#Celsius Chapter 11 Update: Debtor's reply to the Bid Protections Proposal and Objections thereof to be heard in court today. cases.stretto.com/public/x191/11…
— #Celsius reiterate major plan benefits —
1) 100% of common equity to General Earn Claim holders in the form of Equity Share Tokens (ESTs).
2) Management Share Tokens (MSTs) to General Earn Claims get an annual distribution eq to 50bps of NewCo Fee-Paying Asset Value and a 2.5%… twitter.com/i/web/status/1…
1) 100% of common equity to General Earn Claim holders in the form of Equity Share Tokens (ESTs).
2) Management Share Tokens (MSTs) to General Earn Claims get an annual distribution eq to 50bps of NewCo Fee-Paying Asset Value and a 2.5%… twitter.com/i/web/status/1…
#Celsius @CelsiusUcc statement in support of the @NovaWulfDigital Bid Protections as well. Includes similar arguments to debtors and others they've made in previous filings cases.stretto.com/public/x191/11…
The motion for bid protections is the only thing scheduled for the #Celsius court hearing @ 11AM ET today.
I’ll do a quick AMA after the court hearing with other creditors. Set a reminder for the Space! twitter.com/i/spaces/1ZkKz…
#CELSIUS COURT LIVE: Debtor mentioning the $15m->$13m expense reimbursement change and the Loan group settlement to be filed with the plan of reorganization. Swearing in Marc Puntus from Centerview Partners along with his declaration (doc 2152)
#CELSIUS COURT LIVE: He's mentioning 3 developments since his declaration, the two from above and that the alternative bidder has accelerated their plans so the #NovaWulf stalking horse change has had a meaningful affect.
#CELSIUS COURT LIVE: Greg Pesce @CelsiusUcc had no cross for Puntus. US Trustee is digging in on the negotiations involved in the breakup and expense reimbursement fees. Puntus reiterating the reasoning from the debtor's last reply (doc 2297).
#CELSIUS COURT LIVE: Milbank seems to be trying to lock down Puntus' statements to create a reason for them to object. Judge Glenn is getting clarity on what #NovaWulf receives in the event of a Ch7 liquidation vs Ch11 orderly liquidation.
#CELSIUS COURT LIVE: If NovaWulf's plan is not regulatorily complaint, Puntus believes the expense reimbursement would still apply but not the breakup fee. Judge Glenn is pushing them to provide what they've done to achieve that compliance.
#CELSIUS COURT LIVE: Judge Glenn is getting clarity on the fees wrt to the asset NPV/NAV/EST. Estimated initial NAV $1.9bn. Year one fee likely $35m. Net present value will be in disclosure statement. Over time moves to fee on equity value. If terminated no breakup fee. Protected… twitter.com/i/web/status/1…
#CELSIUS COURT LIVE: Judge Glenn is getting clarity on what NovaWulf's claims would be in the event they are fired by the board at some future time.
#CELSIUS COURT LIVE: Puntus is mostly confirming that they are not eligible for additional claims after a negotiated period of time where they are allowed to try and maximize value.
#CELSIUS COURT LIVE: Ignat Tuganov's counsel is verifying that the bid protections motion is still the best path given the alternative bidder they are working with. Puntus believe so. Puntus is reiterating the point that the EST is meant to provide 100% of common equity just in… twitter.com/i/web/status/1…
#CELSIUS COURT LIVE: Puntus describing the future disclosure statement as being the most comprehensive he's worked on. I asked about whether the staked $eth would be part of the liquid or illiquid asset pool. Puntus says it will be part of the illiquid assets.
#CELSIUS COURT LIVE: I added for the record that the plan was proposed by myself for @BankToTheFuture. Arthur Abreu (@RonPaulBot1234) asking questions Centerview & Judge understands.
#CELSIUS COURT LIVE: Jason Iovine asking what happens if $CEL token value changes. Puntus states it's still under discussion. Lawrence Porter asking about what happens in the event of crypto price increases above petition date value. Judge Glenn admonishing him for asking… twitter.com/i/web/status/1…
#CELSIUS COURT LIVE: @mannymane Manny asks if the staked and $stEth was moved to the liquid side, would the bid protections need to change. Manny asking for a rough plan disclosure prior to the detailed one. Puntus says there simply is not enough time and he's worried things… twitter.com/i/web/status/1…
#CELSIUS COURT LIVE: Manny asking for clarity that if ETH 10x, NovaWulf would still receive 20% of the USD price appreciation. Puntus acknowledges that is true for the period the tokens are valued at NAV value.
#CELSIUS COURT LIVE: Erik Mendelson asking Puntus about NovaWulf's preplan financials wrt to the breakup fee. Puntus explaining that the breakup fee is contemplated in relation to a new bidder being much higher and thus compensating the estate for any breakup fees and expenses… twitter.com/i/web/status/1…
#CELSIUS COURT LIVE: @camcrews Cam asking if #NovaWulf is being compensated on a hourly basis for their professionals. Puntus says it's only for the attorney related expenses.
#CELSIUS COURT LIVE: Ryan Reph asking about the ~$30-35m management fee as it relates to the $45m they are providing. He wants to know whether the expenses are from plan confirmation onward or from the outset of their work with the estate. Puntus says it's the latter.
#CELSIUS COURT LIVE: Robert Christiansen asking for clarifications on the board makeup. It will be customer controlled as greater than 50% board will be customers. Judge asking K&E questions next.
#CELSIUS COURT LIVE: Judge asking clarification questions regarding what happens in the event of a breach of the plan after assets have already been transferred to NewCo. K&E believes that at the point of transfer the plan would already be substantially consummated so it wouldn't… twitter.com/i/web/status/1…
#CELSIUS COURT LIVE: Judge Glenn getting clarification from K&E on #NovaWulf's standing given various edge cases (regulatory issues, etc). Glenn mentions the example of @Coinbase's news that it received a Wells Notice.
#CELSIUS COURT LIVE: Judge Glenn is current on the Voyager / Judge Wiles / regulator dynamic and looking for estate protections in the event of regulator pressure.
#CELSIUS COURT LIVE: K&E going back to the amount of unpaid time and effort that NovaWulf has already provided and they believe there reasonable chance for this to succeed. K&E also pushing back that they wanted to have the plan details more fully baked before going to the… twitter.com/i/web/status/1…
#CELSIUS COURT LIVE: Greg Pesce supporting K&E in that they have been in dialog with the regulators for a much longer time and explains that the UCC reasons for backing #NovaWulf as a stalking horse versus other bidders that had similar plans was in order to be conservative on… twitter.com/i/web/status/1…
#CELSIUS COURT LIVE: Pesce also concurring with K&E that given the amount that #NovaWulf has already expended, it would compromise the deal for the bid protections to fall through.
#CELSIUS COURT LIVE: Joe Lehr asking whether the deal with the Loans Ad-Hoc was a major barrier to finalization of a plan. K&E saying it was important for them to build consensus with all the creditor bodies.
#CELSIUS COURT LIVE: Joe was pushing the idea that Earn didn't really have a place at the table. Judge Glenn explains that this is a plan disclosure question. @DavidJAdler1991 Adler confirming that they've reached a settlement for borrowers.
#CELSIUS COURT LIVE: Milbank tried to hop in again but was shut down by Judge Glenn. Judge Glenn asked if the #SEC had any issues with the bid protections. Therese Scheuer for the SEC does not have an opinion at this time. Judge Glenn giving them till next Tuesday @ noon to file… twitter.com/i/web/status/1…
#CELSIUS COURT LIVE: Layla Milligan for the TX OAG confirms there have been discussions regarding the plan and are eagerly awaiting the plan disclosures.
#CELSIUS COURT LIVE: Judge Glenn is pushing for the state regulators to also provide an opinion by the next Tuesday @ noon timeline regarding the bid protections, particularly regarding his concerns around the $13m expense reimbursements.
#CELSIUS COURT LIVE: Adjourned. He'll wait to see the comments from the regulators before providing his decision. Join myself & other creditors here: twitter.com/i/spaces/1ZkKz…
*Meant to say questions they don’t understand. 😂
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