The debtors’ action, which has drawn condemnation from the unsecured committee of creditors and other parties involved in the bankruptcy case of crypto lending business Celsius, has resulted in the suspension of the reconstruction plan.
The move to prolong the term of exclusivity for a Chapter 11 restructuring plan from February 15 to March 31 was opposed on February 8 by the committee, the owners of the Withhold account, the United States Trustee, and the Celsius borrowers. If the proposed extension is accepted and implemented as intended, Celsius’ creditors will have until June 30 to submit a restructuring plan for the business.
The Unsecured Creditors Committee of Celsius mandated that the bankruptcy case “must progress towards a settlement” due to the impact on its consumers. The United States Trustee and Celsius borrowers both voiced their disapproval, complaining that the bankruptcy was “consum[ing] huge sums of professional spending” without providing any assurances that it would be resolved. These people claimed that a sizable chunk of money was being “consumed” by the bankruptcy.
“Many account holders’ lives and financial situations have been thrown into turmoil as a direct result of the prior activity of the Debtors and numerous of its former executives and officers,” the committee claims in a declaration it has released. After concluding that “many account holders’ lives and financial situations have been thrown into chaos,” the committee issued the pronouncement. This statement claims that “many account holders’ lives and financial circumstances have been upended.”