Celsius Network announced that it has initiated proceedings to provide the Company with the opportunity to stabilize its business and complete a restructuring operation, Businesswire reported. In order to implement the restructuring, the Company and some of its subsidiaries have filed voluntary requests for reorganization under the United States Bankruptcy Code in the Bankruptcy Court for the Southern District of New York.
Celsius has filed a series of customary petitions with the Court to allow the Company to continue operating in the normal course. These “first day” motions include requests for employee payment and continuation of benefits without interruption, for which the Company expects to receive court approval. Celsius will continue to operate, has $ 167 million in cash available which is expected to provide ample liquidity to support certain operations during the restructuring process.
“This is the right decision for our community and company,” said Alex Mashinsky, Co-Founder & CEO, Celsius. “We have a strong and experienced team in place to lead Celsius through this process. I am confident that when we look back at the history of Celsius, we will see this as a defining moment, where acting with resolve and confidence served the community and strengthened the future of the company.”
Celsius is not requiring the authority to allow customer withdrawals at this time. Customer complaints will be handled through the Chapter 11 of the U.S. Bankruptcy Code process.
To face this phase Celsius has opted to make use of new professional figures, to provide further leadership and experience, such as David Barse (founder and CEO of XOUT Capital and DMB Holdings); Alan Carr (investment professional, founder and managing member of Drivetrain, LLC); Legal Advisors Kirkland & Ellis LLP and Financial Advisor Centerview Partners, as well as Alvarez & Marsal as a restructuring consultant for Celsius.
