Key points to remember
- Former Celsius chief financial officer Rod Bolger may return to serve as an adviser during the company’s ongoing bankruptcy filing.
- Celsius says Bolger has extensive experience with the company, making such a deal in its best interest.
- Celsius’ latest legal filing suggests a hearing will be held on August 8 to determine whether Bolger will return.
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Bankrupt crypto lending firm Celsius has requested the return of its former chief financial officer as an adviser.
Celsius seeks the services of Bolger
Celsius seeks to mend its relationship with its last chief financial officer.
According to a legal filing, Celsius aims to enter into an advisory agreement with its former chief financial officer, Rod Bolger, for at least six weeks.
Bolger began serving as Celsius’s chief financial officer in February after the company’s former chief financial officer, Yaron Shalem, was arrested in connection with Moshe Hogeg last year.
Bolger then voluntarily resigned on June 30 at the height of the company’s liquidity crisis. He gave eight weeks’ notice of his departure, as required. Bolger himself has now been replaced as CFO by another Celsius executive, Chris Ferraro.
Despite Bolger’s resignation and replacement, Celsius is now asking Bolger to continue to “provide consultancy and advisory services” due to his familiarity with his business.
Celsius says Bolger stabilized the company, guided its finances and “acted as the leader of the company” during its financial crisis.
The company tried to justify its request by saying that the agreement is “an exercise of sound business judgment” and “in the best interest of the debtors [Celsius] and their property”.
Bolger agreed to the terms
The filing says Bolger has agreed to serve as advisor to Celsius pending court approval.
A hearing for the request will be held on August 8 in the United States Bankruptcy Court for the Southern District of New York.
Celsius will hire Bolger as an independent contractor and offer him CA$120,000 a month for six weeks. Although this amount appears to be more than Bolger’s initial salary, the filing notes that the rate is de minimis— inconsequential compared to the $6 billion in assets held by Celsius.
The agreement is expected to last until September 16 but could be extended or terminated by mutual agreement.
Celsius bankruptcy case continues
Celsius halted user withdrawals more than a month ago on June 12. It then filed for Chapter 11 bankruptcy on July 13.
As bankruptcy proceedings began on Monday, July 18, Celsius unveiled its recovery plan. He also confirmed that he would try to restructure rather than go out of business.
While the impact of Bolger’s involvement on the case is unclear, developments suggest that Celsius’s bankruptcy proceedings will continue for some time.
Disclosure: At the time of writing this article, the author of this article owned BTC, ETH, and other cryptocurrencies.