- Celsius has a few more months to submit a Chapter 11 reorganization plan.
- The crypto lending firm had declared bankruptcy on July 13.
The exclusivity period for defunct cryptocurrency lender Celsius was extended until February 15, 2023. With the court’s OK, the struggling cryptocurrency lender has a few more months to submit a Chapter 11 reorganization plan.
Two court sessions on December 6 resulted in the permission to prolong the term of exclusivity. In a tweet, Celsius said that it has submitted a request for permission to sell stablecoins. In order to ensure the company’s future viability. The judge has said his ruling will be released next week. During the extended time frame, Celsius plans to create a strategy for the struggling firm.
Extension For Reorganization
On November 10th, hoping to make significant progress, Celsius requested an extension of the exclusivity period. When a company is in financial trouble, reorganization is the process of adopting a business plan to make changes to the company’s structure or finances under the oversight of the government.
The crypto lending company that declared bankruptcy on July 13 had ceased withdrawals on June 13 due to the harsh market circumstances.
In order to help it through its reorganization, Celsius has brought on David Barse, the CEO and founder of index provider XOUT Capital.
Even though the crypto lending company reported a $1.2 billion balance deficit in its bankruptcy petition, the true shortfall was more than $2.85 billion. The bulk of Celsius’s liabilities ($4.72 billion) came from user deposits, while the company’s assets ($600 million in CEL tokens, $720 million in mining assets, and $1.75 billion in other crypto assets) were all valued at billions of dollars.
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