As we wrote earlier, the Celsius bankruptcy trial has been going on for several months. The company has submitted various petitions to the court, thereby trying to improve its situation. Despite the fact that some of the proposals from Celsius were approved by the court, this has not always happen.
The trustee of the United States, William Harrington, rejected the petition from Celsius for the payment of $2.96 million for 62 employees of the company who are participants in the KERP bonus program.
The pay-out was to be distributed among the participants of the KERP bonus program. In fact, KERP was a motivation for the company's employees during the restructuring process.
The trustee of the United States in his statement opposed the approval of this petition and noted that such a request by Celsius contradicts not only current law, but also logic:
“It defies logic, not to mention the Bankruptcy Code, that a company where the majority of its functions are no longer providing services, would now propose a multi-million dollar bonus scheme.”
William Harrington also noted that one of the main reasons for the rejection of the application was the lack of information about the participants of the KERP program. It is important for the court to know the identity of the participants, what positions they hold, and what their interests are. At the moment, this information has not been provided to the court.
We will continue our observations and will definitely tell you about any new details from the Celsius court case.
This is an update on Celsius trial.