Celsius Network seeks extension of creditor claims filing deadline

The Celsius Network crypto-lending platform, currently undergoing bankruptcy proceedings, has asked the court for an extension of the creditors’ claims filing deadline.

Celsius is preparing to file a motion later this week requesting an extension of the bar date, which is the deadline to file a claim, from January 3, 2023, until early February.

— Celsius (@CelsiusNetwork) December 29, 2022

The established deadline for filing claims was January 3, 2023; the firm wants to move it to early February. The court will consider the motion on January 10, so the de facto deadline has already been extended to that date.

Users in the comments expressed dissatisfaction with the drawn-out proceedings and the mounting costs.

“Extend again, drag out the process to pull more money from creditors. Return our coins and shut down the business,” wrote one of the commentators.

Extend again, extend all the process to dig more money from creditors. Give us back a coins and turn off the business.

— Phisith Siriungcanawong (@Kwinsiri1) December 29, 2022

“People had enough time to file a claim. You are the side running out of time. You want to extend to spend more of our money,” another investor told Celsius.

Ppl have enough time filing claim. You are the side running out of time. You want an extension so you can drain more of OUR COINS

— wyncg🎅 (@wyncg0701) December 29, 2022

In July 2022, the platform filed for bankruptcy under Chapter 11 of the US Bankruptcy Code. According to the Financial Times, by the end of December Celsius’s costs for managing the case, paying lawyers and consultants had already reached $53 million.

For example, one of the law firms representing the company — Kirkland & Ellis — requested about $9 million for services provided in September and October.

By contrast, in early December the court allowed Celsius to return assets worth $44 million to holders of custodial accounts. In August, the “hole” in the balance sheet was estimated at $2.85 billion.

The founder of the platform BnkToTheFuture Simon Dixon in response to a tweet from one of the creditors gave a bleak forecast:

“Prepare yourself for 50% of funds back from Celsius in six months under Chapter 11. Manage your expectations. Focus on family and getting settled in 2023.”

Prepare yourself for 50% in 6 months with #Celsius Chapter 11 to manage your expectations | Focus on your family over XMas & rebuilding in 2023. https://t.co/E0WeDuPem0

— Simon Dixon (@SimonDixonTwitt) December 23, 2022

According to Jefferies Financial analysts, creditors of the failed crypto exchange FTX will be able to recover no more than 40% of their investments. Restructuring costs for the platform could reach up to $1 billion.

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