Struggling lending platform Celsius wants former CFO Rod Bolger back and pays him about $92,000 a month for at least six weeks. The lender says he needs Bolger to help him through bankruptcy proceedings as an advisor. according to the petition filed in the Southern District of New York.
“Because Mr. Bolger is familiar with the business of the Debtors, the Debtors have made a request, and Mr. Bolger has agreed, pending the approval of the Court, to continue to provide advisory and advisory services to the Debtors in accordance with the Advisory Agreement,” the document reads. “As consideration for the consulting services rendered by Mr. Bolger, the Debtors agree to pay Mr. Bolger an amount of C$120,000 per month prorated for partial months.”
The petition goes on to say that during Bolger’s tenure, he led efforts to stabilize the business during this year’s turbulent market volatility, leading the financial aspects of the business and serving as the company’s leader. Ultimately, the Southern District of New York must decide whether to allow Bolger to come. on board with Celsius. A Zoom hearing is scheduled for Monday, August. 8 to consider movement.
Bolger, A. former CFO of Royal Bank of Canada and divisions of Bank of Americapreviously worked for the company for five months before retiring on June 30, about three weeks after the platform has suspended all withdrawals, citing “extreme market conditions”. Although he worked full-time for the company as CFO, this petition shows that he had a base salary of $750,000 and a cash bonus of up to 75% of his base salary, in addition to stock options and tokens. or the total income range is about $1.3 million.
The company subsequently appointed Chris Ferraro, then Head of Financial Planning, Analysis and Investor Relations at Celsius, as Chief Financial Officer. A few days after his appointment, the company filed for bankruptcy.
At its peak in October 2021, CEO Alex Mashinsky said that crypto lender had $25 billion in assets under management. Celsius has now dropped to $167 million “cash in hand” which he said would provide “sufficient liquidity” to support operations in the restructuring process. Celsius owes about $4.7 billion to its users. according to the bankruptcy filing.
This filing also reveals that Celsius has over 100,000 lenders, some of which lend the platform cash without any collateral to support the arrangement. The list of the top 50 unsecured creditors includes Sam Bankman-Fried trading firm Alameda Research, as well as an investment firm based in the Cayman Islands.
For retail investors applied to the judge to help them recover some of their lost possessions, with some saying that their savings were effectively destroyed.
CPA and Celsius investor with over $1,000,000 stuck on the Celsius platform. filed an objection on Tuesday challenge Celsius’s motion to reinstate its former chief financial officer.