Embattled lending platform Celsius wants to bring ex-CFO Rod Bolger back and pay him about $92,000 a month, prorated over a period of at least six weeks. The struggling lender says it needs Bolger to help it navigate bankruptcy proceedings as an adviser. according to a motion filed in the Southern District of New York.
“Due to Mr. Bolger’s familiarity with the Debtors’ business, the Debtors have requested, and Mr. Bolger has agreed pending the Court’s approval, to continue to provide advisory and consulting services to the Debtors pursuant to an Advisory Agreement,” the filing says. “In consideration of the advisory services rendered by Mr. Bolger, the Debtors agree to pay Mr. Bolger the sum of $120,000 CAD per month, prorated by partial months.”
The motion goes on to say that during Bolger’s tenure, he led efforts to stabilize the business during turbulent market volatility this year, guiding the financial aspects of the business and acting as the company’s leader. Ultimately, it is up to the Southern District of New York to decide whether to allow Bolger to board Celsius. A Zoom hearing is set for Monday, August 8 to consider the motion.
Bolger, a former CFO of Royal Bank of Canada and divisions of Bank of America, was previously with the company for five months before resigning on June 30, about three weeks after the platform halted all withdrawals, citing “extreme market conditions.” Although he worked full-time with the company as CFO, this motion shows he had a base salary of $750,000 and a performance-based cash bonus of up to 75% of his base, plus ‘stock options and tokens, which achieved the best. of its total income ranges from 1.3 million dollars.
The company subsequently installed Chris Ferraro, then Celsius’ head of financial planning, analysis and investor relations, as CFO. A few days after his appointment, the company declared bankruptcy.
Once a titan of the crypto-lending world, Celsius is in bankruptcy proceedings and facing claims that it was running a Ponzi scheme by paying early depositors with money it got from new users.
At its peak in October 2021, CEO Alex Mashinsky said that The crypto lender had $25 billion in assets under management. Now, Celsius is ready $167 million in “cash on hand,” which it says will provide “ample liquidity” to support operations during the restructuring process. Celsius owes its users about $4.7 billion, according to your bankruptcy filing.
This filing also shows that Celsius has more than 100,000 creditors, some of whom lent cash to the platform without any collateral to back up the deal. The list of its top 50 unsecured creditors includes Sam Bankman-Fried’s trading firm Alameda Research, as well as an investment firm based in the Cayman Islands.
Retail investors have asked the judge to help them recover some of their lost holdings, with some saying their life savings have effectively been wiped out.
A CPA and Celsius investor with a large balance trapped on the Celsius platform filed a claim on Tuesday to contest Celsius’ motion to reinstate its former CFO.
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