Celsius Network LLC Seeks Approval for Core Scientific Settlement

Celsius Network LLC and its associated debtors have filed a motion with the bankruptcy court seeking approval of a compromise agreement between Celsius Network LLC and Core Scientific Operating Company concerning litigation between the two companies.

Christopher Ferraro, Celsius’ interim Chief Executive Officer, Chief Restructuring Officer, and Chief Financial Officer, stated in a statement supporting the motion that Celsius and Core have been involved in litigation regarding contract issues known as the “Core Matters.”

The declaration of Ferraro was submitted in support of the petition.

According to the proposed provisions of the settlement agreement, Celsius would pay Core $45 million to acquire the Cedarvale Bitcoin mining site.

The value would include a $14 million cash payment, with the remaining $31 million being considered in exchange for Celsius withdrawing claims against Core in the Core Matters litigation.

Ferraro expressed his conviction that the settlement agreement is acceptable and provides the most significant possible benefit to the parties involved and the estate of Celsius’s insolvent business.

He stated that this would prevent potentially costly and hazardous litigation that would otherwise delay Celsius’s efforts to reorganize its bankruptcy estate.

It is abundantly evident in the declaration that the settlement agreement does not release claims that Celsius has against Core that are linked to convertible notes.

According to Ferraro, acquiring the Cedarvale property and resolving the Core Matters lawsuit both contribute to the development of consensus among Celsius’s stakeholders.

Before entering into force, the settlement agreement must first receive court approval.