Crisis lending platform Celsius wants to bring back ex-CFO Rod Bolger and pay him about $92,000 a month over a period of at least six weeks. The beleaguered lender says it needs Bolger to help navigate bankruptcy proceedings as a consultant, according to a motion filed in the Southern District of New York.
“Due to Mr. Bolger’s familiarity with the debtors’ business, Debtors has requested, and Mr. Bolger has agreed, pending court approval, to continue to provide advisory and consulting services to Debtors pursuant to an advisory agreement,” reads the file. “Considering the advisory services provided by Mr. Bolger, the Debtors agree to pay Mr. Bolger an amount of CAD $120,000 per month, which is proportionate to partial months.”
The resolution further states that during Bolger’s tenure, he led efforts to stabilize the business during turbulent market volatility this year, guided the financial aspects of the business and served as the company’s leader. Ultimately, it is up to the Southern District of New York to decide whether to allow Bolger to ship with Celsius. A Zoom hearing is scheduled for Monday, August 8, to consider the proposal.
Bolger, a former CFO for the divisions of Royal Bank of Canada and Bank of America, was previously with the company before resigning on June 30, nearly three weeks after the platform halted all withdrawals, citing “extreme market conditions”. stopped. While he worked full-time with the company as CFO, the offer reveals that in addition to stock and token options, he had a base salary of $750,000 and a performance-based cash bonus of up to 75% of his base. His net income limit is around $1.3 million.
The company later replaced Chris Ferraro as CFO, who was then head of financial planning, analysis and investor relations for Celsius. Within days of his appointment, the company filed for bankruptcy.
Once a titan of the cryptocurrency lending world, Celsius is in bankruptcy proceedings and is facing claims that it was running a Ponzi scheme by paying off depositors early with money received from new users.
At its peak in October 2021, CEO Alex Mashinsky said the crypto lender had $25 billion in assets under management. Now, Celsius is down to $167 million in “cash on hand,” which it says will provide “sufficient liquidity” to support operations during the restructuring process. According to the bankruptcy filing, Celsius owes its users about $4.7 billion.
That filing also shows that Celsius has more than 100,000 creditors, some of whom lent cash to the platform without any collateral to support the arrangement. Its top 50 unsecured creditors list includes Sam Bankman-Fried’s trading firm Alameda Research as well as an investment firm based in the Cayman Islands.
Retail investors have petitioned the judge to help them recover some of their lost assets, some saying their life savings have been effectively exhausted.
A CPA and Celsius investor with a large balance stuck on the Celsius platform filed an objection on Tuesday challenging Celsius’ proposal to reinstate its former CFO.