Court Gives Celsius A New Deadline For Its Restructuring Plan

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Celsius, a bankrupt cryptocurrency lender was granted a new exclusivity term that would last until February 15, 2023. The struggling crypto lender now has a few more months to file for a Chapter 11 restructuring plan thanks to the court’s approval.

After two court appearances on December 6, the decision to prolong the exclusivity period was made. In a tweet, Celsius stated that the company had applied for permission to sell stablecoins in order to provide liquidity for ongoing operations.

Celsius launched its platform on June 13 and declared bankruptcy a month later on July 13. The judge has said he will announce his judgment soon, probably next week.

Celsius aims to use the extended time to create a strategy for a standalone business, saying:

“We explore every opportunity to maximize the value that is accessible to us for the benefit of our stakeholders and customers.”

Court gives Celsius a new deadline for its restructuring plan.

On Nov. 10, Celsius filed a request for an extension of the exclusivity period in the hope of achieving significant development.

Restructuring is the process of putting into action a business plan to change a corporation’s organizational structure or financial situation under government oversight due to financial pressure.

Withdrawals were stopped on June 13 due to harsh market conditions, and a month later, on July 13, the bankrupt cryptocurrency lender filed for bankruptcy.

David Barse, the founder and CEO of the index company XOUT Capital and a “pioneer” in distressed investing, was hired as a new director to lead Celsius through the restructuring process.

The crypto lending company reported a $1.2 billion balance difference in its bankruptcy petition, but the true gap ended up being more than $2.85 billion. At $4.72 billion, user deposits made up the majority of the company’s liabilities.

Celsius’ assets, however, include CEL tokens worth $600 million, mining equipment worth $720 million, and $1.75 billion in other cryptocurrencies.

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Mufasa
Mufasa
Mufasa is the lead writer at CryptoMufasa who likes to share all the latest info on the crypto world with you! Mufasa Enjoys enjoys a good read and recommendations so don't forget to comment on the posts and let him know.

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