Arguments Made Against Celsius’s Bankruptcy Extension
People involved in the Celsius bankruptcy case have objected to the former crypto lender’s most recent move to postpone an important date. Since it filed for Chapter 11 bankruptcy in July 2022, the lender has been given the only authority to suggest a restructuring plan.
Extension granted in the past, in December
The deadline for Celsius was earlier extended by the court handling the case to February 15, 2023 after the firm claimed that it needed more time. But a recent motion submitted in late January asked for an additional 44-day extension until March 31 and the authority to ask for votes on the suggested strategy until June.
Organizations Voice Concerns
The committee of unsecured creditors is concerned that Celsius may run out of money by the end of June, which has caused alarm among those involved in the case. The company’s financial burn rate and the quick consumption of its assets by lawyers were mentioned as justifications for objecting to the extended timetable.
The Committee is Ready to Act
The committee claimed that if an agreement cannot be reached, it wants to ask the court to refuse the motion and will be ready to present its own restructuring plan right away, despite Celsius’s contention that several creditors need to weigh in on the proposed plan.