Court sets new deadline for Celsius restructuring plan

Celsius halted withdrawals on the platform on Jun. 13 and filed for bankruptcy a month later on Jul. 14.

Bankrupt crypto lender Celsius was granted an extension on its exclusivity period until Feb. 15, 2023. The court approval would give the troubled crypto lender another couple of months to file for a Chapter 11 restructuring plan.

The approval to extend the exclusivity period came after two court hearings on Dec. 6. Celsius, in an official tweet, said that they requested approval to permit the sale of stablecoin, aimed at providing liquidity for continued operations The Judge has indicated that he will share his decision soon, likely next week.

Celsius hopes to use the extension period to develop a plan for a stand-alone business and said:

“We explore all value-maximizing opportunities available to us for the benefit of our customers and other stakeholders.”

Celsius filed for an extension of the exclusivity period on Nov. 10 with hopes of making substantial progress. Reorganization is a process of implementing a business plan to alter a corporation’s structure or finances because of financial duress under government supervision.

Celsius today filed a motion requesting approval to extend the Exclusivity Periods in our cases. This is the period when Celsius has the exclusive right to submit a plan of reorganization.

— Celsius (@CelsiusNetwork) November 10, 2022

The bankrupt crypto lender halted withdrawals on June 13, citing extreme market conditions and filed for bankruptcy a month later on July 13.

Related: Novogratz’s Galaxy Digital to acquire Celsius’ GK8 in bankruptcy garage sale

Celsius has appointed a new director to guide it through the restructuring process, including David Barse, a “pioneer” in distressed investing who is the founder and CEO of index company XOUT Capital.

The crypto lending firm showed a balance gap of $1.2 billion in its bankruptcy filing, but the actual gap turned out to be more than $2.85 billion. User deposits made up the majority of liabilities at $4.72 billion, while Celsius’ assets include CEL tokens valued at $600 million, mining assets worth $720 million and $1.75 billion in other crypto assets.