Celsius Network LLC and its affiliated debtors in bankruptcy court have filed a motion seeking approval of a settlement agreement with Core Scientific Operating Company related to litigation between the two companies.
In a declaration filed supporting the motion, Celsius’ interim Chief Executive Officer, Chief Restructuring Officer, and Chief Financial Officer, Christopher Ferraro, stated that Celsius and Core have been involved in litigation over contract disputes referred to as the “Core Matters.”
Under the proposed settlement agreement, Celsius would acquire a Bitcoin mining site called Cedarvale from Core for $45 million. The consideration would include $14 million in cash, and the remaining $31 million would serve as consideration for Celsius releasing claims against Core related to the Core Matters litigation.
Ferraro declared his belief that the settlement agreement is reasonable and in the best interests of Celsius’ bankruptcy estate and stakeholders. He stated it would avoid costly and risky litigation that could otherwise delay Celsius’ bankruptcy reorganization plan.
The declaration makes clear the settlement agreement does not release claims Celsius has against Core related to convertible notes.
Ferraro stated acquiring the Cedarvale site and settling the Core Matters litigation helps build consensus among Celsius’ stakeholders. The court must approve the settlement agreement for it to take effect.
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