For you who are coming now, this is an update of the chapter 11 bankruptcy proceedings of the company called Cred, which had a program called CredEarn, offered by Uphold to its clients. For those who use the Brave browser, you may have already come across these names. In fact through CredEarn it was possible to lend its assets or cryptomoedas for a 6 month blockade in exchange for 5% to 10% annual interest on the loan. Those who held a minimum of 10,000 LBA (Libra Token) earned higher interest.
Well, so far so good, a company recommended by Uphold, which in turn has a partnership with Brave Browser, so it all looked good.
The problem begins in November of last year (2020), at the very beginning of the Bull Market, Uphold cancels its contract with Cred, and those who had loans through Uphold see their frozen balances no longer return to their Uphold portfolios after the bombing of the announcement of Cred's bankruptcy.
In the links below you can see what has been happening since November to here:
CredEarn Bankrupt News (09/12 update)
CredEarn Bankrupt News (10/12 update)
Today we are going to talk about an email that clients received from the law firm Donlin Recano. It seems to be a secret ballot in which the creditor's committee will decide the course of the process by accepting or not the terms. Let's take a look at what is contained in this document sent by Donlin Recano:
BALLOT FOR ACCEPTING OR REJECTING JOINT PLAN OF LIQUIDATION OF CRED, INC. AND
ITS SUBSIDIARIES UNDER CHAPTER 11 OF THE BANKRUPTCY CODE
Cred Inc. and its affiliated debtors, as debtors in possession (collectively, the “Debtors”) are soliciting votes with respect to the First Amended Combined Joint Plan of Liquidation and Disclosure Statement of Cred Inc. and its Subsidiaries Under Chapter 11 of the Bankruptcy Code (with respect to its component parts, as modified, amended, or supplemented from time to time, the “Plan” and the “Disclosure Statement”, or, collectively the “Combined Joint Plan and Disclosure Statement”). Capitalized terms used in this Ballot and the attached instructions that are not otherwise defined have the meanings given to them in the Combined Joint Plan and Disclosure Statement.
If you, as of January 14, 2021 (the “Voting Record Date”), hold a Class 5 Convenience Claim, as defined in the Plan, this Ballot permits you to cast your vote to accept or reject the Plan. The Disclosure Statement has been
approved on an interim basis by the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”).
The Bankruptcy Court’s interim approval of the Disclosure Statement does not indicate Bankruptcy Court approval of the Plan. The Plan can be confirmed by the Bankruptcy Court and thereby made binding on you if the Plan (i) is accepted by the holders of at least two-thirds in amount and more than one-half in number of the Claims in each impaired Class of Claims who vote on the Plan, (ii) is accepted by the holders of at least two thirds in amount of the interests in each impaired Class of interests who vote on the Plan and (iii) otherwise satisfies the applicable requirements of section 1129(a) of the Bankruptcy Code. If the requisite acceptances are not obtained, the Bankruptcy Court nonetheless may confirm the Plan if it finds that the Plan (i) provides fair and equitable treatment to, and does not unfairly discriminate against, the Class or Classes rejecting the Plan and (ii) otherwise satisfies the requirements of section 1129(b) of the Bankruptcy Code.
Ballots may be submitted either in hard copy to the Voting Agent or via the Online Portal, as further detailed in the attached Instructions. Ballots submitted by e-mail or facsimile transmission will not be accepted. Ballots should not be sent to the Debtors or the Bankruptcy Court.
It seems then that the process is underway and according to other documents and discussions in the creditor committee telegram group, it is still possible to receive back all or part of the amounts invested in the irresponsible Cred.
Telegram group link: https://t.me/credlbaunnofficial
Stay tuned, subscribe to our channel to stay on top of updates!