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Summary from the TLDR Crypto newsletter

The winning bid for Celsius involves creditors owed more than $5,000 becoming shareholders in a new company managed by Farenheit, which includes Celsius' DeFi crypto assets, loan portfolio, PE & VC investments, and mining assets. A small distribution of remaining liquid crypto will also be given. Those owed less than $5000 will receive 70% of their claims and no equity. This arrangement is a compromise as, while the creditors surrender their debt claims against Celsius, they gain a stake in the potentially profitable NewCo. If the NewCo isn’t successful though, creditors’ equity stakes will be wiped out.