Beleaguered cryptocurrency lender Celsius Network has filed for an Exclusivity Period seeking the court’s approval to extend the submission of its restructuring plan.
Celsius Seeks Extension to Resolve Legal Issues
Announcing the latest developments in its ongoing bankruptcy proceedings on Thursday, the company said it still has some critical legal issues that need to be resolved before moving forward with the case.
There remain significant legal questions and issues that must be resolved before our cases can reach a conclusion.
— Celsius (@CelsiusNetwork) November 10, 2022
If the request is approved, the extension gives it time to identify the right organizational plan that could benefit the company and its debtors.
The crypto lender noted that any interruption could jeopardize the “very goal all parties in our case share: expeditiously moving these chapter 11 cases to a value-maximizing resolution.”
Celsius was one of the many victims of the May Terra(LUNA) crash. The crypto lender was forced into bankruptcy after suffering a massive liquidity crisis and could not honor users’ withdrawal requests.
Last month, the firm disclosed its plans to auction some of its assets for possible bailouts, following other LUNA victims like Voyager Digital, which also conducted an auction as part of its organizational plan.
The auction was held on October 20, with a sales hearing scheduled for November 1. However, the hearing has been adjourned to November 15, 2022.
Recall that in September, Celsius filed a motion at the bankruptcy court seeking the court’s permission to sell $23 million in stablecoin to enable it to resume operations.
Celsius Stakeholders Files to be Part of Repayment Plans
Aside from bankruptcy proceedings, Celsius Network is also facing lawsuits like those recently filed by its stakeholders.
According to a court filing at the United States Bankruptcy Court for the Southern District of New York, holders of preferred equity are asking to be included in the company’s repayment plans.
The stakeholder wants to appoint a Preferred Equity Committee to represent Series A and Series B shareholders who participated in the fundraising for the company before its collapse.
The motion seeks to place the shareholder’s needs above debtors regarding the sale of custody firms GK8 and Celsius mining operations.
