Bankrupt cryptocurrency lender Celsius was granted an extension on its exclusivity period until Feb. 15, 2023.
The troubled 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 it had applied for permission to sell stablecoins in order to raise money for ongoing operations.
The judge has said he will announce his choice soon, probably next week. Celsius hopes to use the additional time to create a strategy for a standalone company, saying:
“We explore all value-maximizing opportunities available to us for the benefit of our customers and other stakeholders.”
On Nov. 10, Celsius filed a request for an extension of the exclusivity period in the hopes of achieving significant advancement. Reorganization 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 extreme 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 appointed as a new director to lead Celsius through the restructuring process.
The crypto lending company reported a $1.2 billion balance gap in its bankruptcy filing, but the true gap ended up being more than $2.85 billion. The majority of liabilities, $4.72 billion, were user deposits, while Celsius’ assets included CEL (CEL $0.69).tokens worth $600 million, mining equipment worth $720 million, and additional cryptocurrency assets worth $1.75 billion.
