Celsius receives court clearance to submit a reorganization plan
According to a tweet published by Celsius Network on Tuesday, the company has obtained confirmation that the bankruptcy court for the Southern District of New York has granted the request of cryptocurrency lender Celsius Network to extend the deadline for submitting a reorganization plan.
The revised submission deadline for Celsius is set for February 15th, 2023. It was also said in the tweet that the corporation will utilize the additional time to investigate a “strategy for a stand-alone business.”
The decision about whether or not to enable Celsius Network to trade stablecoins in order to “provide liquidity for our continued operations” will be made by the court “likely’ next week.”
Customers of Celsius Network’s “Earn” account argued that the stablecoins in the account belonged to them and that the cryptocurrency lender is unable to liquidate them. Celsius Network made an application to sell US$18 million worth of stablecoins in its “Earn” account for the purpose of reorganization.
In July, Celsius filed an application for protection under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York. A court document made by the consulting firm Kirkland & Ellis indicated that Celsius’ financial sheet had liabilities of $2.8 billion US.