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Celsius Names Winning Bidder; Another KKR-Backed Health Business Nears Bankruptcy
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Good day and welcome to WSJ Pro Bankruptcy's Daily Briefing. It's Friday, May 26. In today's newsletter, Celsius named the winning bidder to manage its remaining business lines outside of bankruptcy, raising the odds that the crypto lender will avoid a value-destructive liquidation. And KKR's GenesisCare is nearing bankruptcy, highlighting the continued stress in the U.S. healthcare sector.
Note to readers: The newsletter won't be published on Monday in observance of Memorial Day in the U.S. We will be back on Tuesday.
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Photo: Dado Ruvic/Reuters
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Celsius names Michael Arrington's Fahrenheit as winning chapter 11 bidder. Cryptocurrency lender Celsius Network selected Fahrenheit, a group of investors led by TechCrunch founder Michael Arrington, to run the reorganized company as it moves toward emerging from bankruptcy.
Celsius will distribute cryptocurrency to customers and will create a reorganized public company to manage illiquid assets, including its nascent bitcoin-mining business. Under the sale agreement, Celsius customers will own nearly all the equity in the new company, subject to dilution from shares that will be distributed to Fahrenheit as management fees. Account holders who had cryptocurrency in the company’s high-interest savings accounts will receive their prorated share of crypto left on the platform.
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GenesisCare, which is backed by KKR, has been struggling under a debt load in part stemming from its acquisition of 21st Century Oncology.
Photo: Brendan McDermid/Reuters
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KKR-backed cancer-care company to file chapter 11. GenesisCare, a provider of cancer-care services backed by KKR, is preparing to file for bankruptcy within days, according to people familiar with the matter.
GenesisCare has been struggling under a debt load in part stemming from its $1.5 billion acquisition of 21st Century Oncology in 2020.
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Crypto firm DCG to close institutional trading platform TradeBlock. Digital Currency Group is closing down its institutional trading platform subsidiary at the end of the month, following an unsuccessful effort to sell the business, according to people familiar with the matter.
The crypto conglomerate said Thursday that it would shutter TradeBlock on May 31. In recent months, DCG had tried to sell the platform for a few million dollars, some of the people said. DCG is separately embroiled in the chapter 11 case of its Genesis Global Capital unit, which is in the midst of mediated talks about how to end the bankruptcy.
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AppHarvest, which grows crops in indoor facilities, was once valued above $3.5 billion. Its market value is now down to about $75 million. Photo: AppHarvest/Reuters
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High-tech farm startups laid low. The struggles of indoor-agriculture companies mark the latest faltering efforts by entrepreneurs to use technology to upend established industries. Startups that promised to make farming a high-tech business are withering, suffering from rising costs, tight financing, pests and other problems that have troubled traditional agriculture for centuries.
Investors poured billions of dollars into companies such as AppHarvest that use advanced technology such as sensors and robots to offset weather-related risks, use less water and produce more consistent crops. Shares of the two companies are down more than 95% since they went public in 2021, and in recent months at least four companies in the sector have shut down or filed for bankruptcy.
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Michael Hsu, head of the OCC.
Photo: Mandel Ngan/Agence France-Presse/Getty Images
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Editor’s Note: Each week, we will share selections from WSJ Pro that provide insight and analysis we hope are useful to you. The stories are unlocked for The Wall Street Journal’s subscribers.
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