Celsius Seeks Extension of Deadline to File Reorganization Plan

The management of Celsius Network, the crypto-lending platform, filed a motion in bankruptcy proceedings for an extension of time to develop a reorganization plan.

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 motion cites unresolved important legal issues and the need to continue negotiations with interested parties.

“Any delays could undermine the swift progress toward a decision that yields maximum value. We recognise delays and costly disruptions in operations if competing plans are proposed,” — the leadership said.

Earlier, the bankruptcy trustee denied the payment of $2.96 million to employees.

Earlier in June, the Celsius crypto-lending platform paused withdrawals, exchanges and transfers between accounts.

One month later, Celsius and certain affiliated entities filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code. The platform’s liabilities exceeded its assets by $2.85 billion.

On October 25, the bankruptcy judge approved the plan for the auction of Celsius Network’s assets. The auctions could conclude by the end of the year.

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