Bankrupt crypto lender Celsius gets court approval for extension to file restructuring plan

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Cryp­tocur­ren­cy lender Cel­sius Net­work has received approval from the bank­rupt­cy court of the South­ern Dis­trict of New York to extend the dead­line to sub­mit a restruc­tur­ing plan, accord­ing to a tweet by Cel­sius on Tuesday.

See relat­ed arti­cle: Cel­sius seeks court approval to mon­e­tize sta­ble­coin assets

Fast facts

  • Celsius’s new dead­line for sub­mis­sion is Feb.15, 2023. The tweet also said the com­pa­ny would use the extend­ed time to explore “ plan for a stand-alone business.”
  • The court will decide “like­ly’ next week” whether to allow Cel­sius Net­work to sell sta­ble­coins to “pro­vide liq­uid­i­ty for our con­tin­ued operations.”
  • Cel­sius Net­work applied to sell US$18 mil­lion of sta­ble­coins in its “Earn” account for reor­ga­ni­za­tion, but cus­tomers of the account argued that the sta­ble­coins in the account belonged to them and that the cryp­to lender can­not liq­ui­date them. 
  • Cel­sius filed for Chap­ter 11 bank­rupt­cy pro­tec­tion in the U.S. Bank­rupt­cy Court for the South­ern Dis­trict of New York in July. A court fil­ing by con­sult­ing firm Kirk­land & Ellis revealed a US$2.8 bil­lion lia­bil­i­ties in Cel­sius’ bal­ance sheet.

See relat­ed arti­cle: JP Mor­gan appoints ex-Cel­sius exec to head cryp­to reg­u­la­to­ry policy



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