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Celsius Executes WBTC to Bitcoin Conversion with Consent from Creditor Committee

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On March 4, according to a document in the Chapter 11 bankruptcy protection proceedings of Celsius on March 3, the conversion of 22962.8 WBTC to Bitcoin by Cel…

Celsius Executes WBTC to Bitcoin Conversion with Consent from Creditor Committee

On March 4, according to a document in the Chapter 11 bankruptcy protection proceedings of Celsius on March 3, the conversion of 22962.8 WBTC to Bitcoin by Celsius on February 28 was carried out with the consent of the Celsius creditor committee.

Cersius converted nearly 23000 WBTC to BTC on Tuesday with the consent of the creditor committee

Interpretation of the news:


A recent document in the Chapter 11 bankruptcy protection proceedings of Celsius on March 3 revealed that Celsius had converted 22,962.8 Wrapped Bitcoin (WBTC) to Bitcoin on February 28 with the consent of the Celsius creditor committee. The conversion was executed as part of Celsius’ restructuring efforts, which include a plan to negotiate with creditors and reorganize its operations.

WBTC is an Ethereum-based token that represents Bitcoin, allowing holders to trade or use Bitcoin on decentralized applications (dApps) on the Ethereum network. Celsius had reportedly received the WBTC tokens as collateral from a borrower who had defaulted on their loan, and decided to convert them to Bitcoin in order to secure additional collateral for the company.

The fact that the conversion was carried out with the approval of the creditor committee is significant, as it suggests that Celsius is taking steps to ensure the equitable treatment of its creditors as it navigates its way through the bankruptcy process. The creditor committee is made up of representatives from the company’s largest creditors, who are tasked with reviewing and approving major decisions related to the restructuring process.

The conversion of WBTC to Bitcoin could potentially result in increased liquidity for Celsius, as Bitcoin is more widely accepted and used than WBTC. Furthermore, by securing additional collateral, Celsius may be able to negotiate better terms with creditors and improve its chances of successfully emerging from bankruptcy.

Overall, the recent news regarding Celsius’ restructuring efforts suggests that the company is taking a proactive approach to addressing its financial challenges and is committed to negotiating in good faith with its creditors. By securing additional collateral and obtaining consent from the creditor committee, Celsius may be able to strengthen its position and increase its chances of successfully reorganizing its operations.

In conclusion, the conversion of WBTC to Bitcoin by Celsius with consent from the creditor committee is a positive development for the company and its creditors. By taking steps to improve its liquidity and secure additional collateral, Celsius is positioning itself for a successful restructuring and eventual emergence from bankruptcy.

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