Celsius Network LLC, along with its affiliated entities currently in bankruptcy proceedings, has submitted a request for the final approval of a settlement deal with Core Scientific Operating Company, a company with whom Celsius has been embroiled in litigation.
Christopher Ferraro, who currently holds multiple positions at Celsius, including interim Chief Executive Officer, Chief Restructuring Officer, and Chief Financial Officer, submitted a statement supporting the motion. In this statement, Ferraro acknowledged the legal disputes, referred to as the “Core Matters,” that have arisen between Celsius and Core.
The proposed settlement outlines that Celsius will acquire the Cedarvale Bitcoin mining facility from Core for a sum of $45 million. This payment will consist of $14 million in cash, with the remaining $31 million serving as compensation for Celsius agreeing to drop any claims against Core pertaining to the Core Matters litigation.
Ferraro expressed his belief that the settlement agreement is both reasonable and beneficial to Celsius’ bankruptcy estate and its stakeholders. He emphasized that it would prevent the potentially expensive and risky litigation that could otherwise disrupt Celsius’ bankruptcy reorganization plan.
Celsius Network Awaits Approval for Settlement Agreement with Core Scientific
The declaration explicitly states that the settlement does not release any claims Celsius may have against Core related to convertible notes.
Ferraro asserted that the acquisition of the Cedarvale mining site and the resolution of the Core Matters litigation would help foster agreement and consensus among Celsius’ stakeholders. However, the final approval of the settlement agreement rests with the court.