Lending platform Celsius Network is seeking a delay in filing its bankruptcy filing. According to the company, the request is for the judgment scheduled for January 10 to take place only a month from now. In the order, the company asks for this deadline for users to send their claims for another month. At the same time, the company would gain more time to better prepare and present its defense. In its latest update, Celsius said that judgment on the motion is initially scheduled for January 3, but the Bankruptcy Court postponed it to the 10th. On that date, the court must decide whether or not to grant the new deadline to Celsius. “For now, the deadline is extended (to the 10th) until the motion is considered by the Court. We will provide further updates on the bar date as they become available,” Celsius said via twitter. If the court grants the deadline extension, Celsius’s new trial date could move to early February.
Celsius asks for adjournment of the trial of his case. Source: Twitter.
Bankruptcy and restructuring protection
Celsius filed for bankruptcy protection on July 14, as reported by CriptoFácil. In its filing, the company invoked Chapter 11, which deals with bankruptcy in the United States. Thus, the company’s case was under the responsibility of the Bankruptcy Court of the country, which must schedule a hearing. But Celsius asks for the postponement of that date, in order to have more time to listen to customer demands. But, naturally, the greatest demand is for the return of funds that are blocked. Celsius blocked withdrawals before filing for recovery, and according to the court filing by consulting firm Kirkland & Ellis, the company has $2.8 billion in liabilities on its balance sheet. Celsius was also given an extension to file the Chapter 11 reorganization plan through mid-February. On that date, the company will probably present some proposal for reimbursement.
And the customers?
Even with the recovery, Celsius has already returned part of the customer values in December. As reported by CriptoFácil, bankruptcy judge Martin Glenn ordered the company to return BRL 210 million to its customers. However, this money was not part of his interest-bearing accounts, that is, the accounts that paid interest. The amounts held in these accounts remain blocked and are under the supervision of the US justice system. Celsius account holders took to social media to express their outrage over the costs and slow progress of the case. After all, the longer the time, the more expenses clients have with lawyers and with the process as a whole. Recently, the Financial Times claimed that costs are piling up for law firms associated with a range of companies that have succumbed to the bear market. In addition, the drop in cryptocurrency prices devalues the assets of Celsius customers. In the Celsius case, the attorneys, bankers and other advisers filed detailed requests for fees to the federal bankruptcy court in New York, totaling $53 million. To the frustration of investors, Kirkland & Ellis and White & Case are involved in the Celsius case, with their top lawyers making more than $1,800 an hour.
