The company now intends to use the extended time to keep strategizing on how to put this entire menace behind it.
Bankrupt digital currency lending platform Celsius Network has announced that the Court has extended its exclusive period to submit a proposal for its Chapter 11 reorganization plan until February 15 next year.
Exclusive Period for Celsius Network
The beleaguered crypto firm took to Twitter to make this revelation, noting that the approval for the extension came after two hearings it participated in on Monday. One of the hearings also involved the plans by the company to sell off some of its stablecoin holdings to continue its operations and return value to stakeholders.
“Celsius participated in two hearings today and continued to advance the dialogue on key matters with important stakeholders in our cases,” Celsius Network said in the tweet, “This morning, we discussed our motion requesting approval to permit the sale of stablecoin, aimed at providing liquidity for our continued operations as we work to maximize value for all stakeholders. The Judge has indicated that he will share his decision soon, likely next week.”
Should the stablecoin sale request be granted as projected, Celsius Network will no longer be cash strained as its bankruptcy proceedings drag along.
Celsius Network was among the first cryptocurrency firms to hit the rocks earlier this year riding on the aftermath of the collapse of Terra (LUNA) and the entire crypto market at the time. After much resistance, the company later filed for bankruptcy in July, setting up an avalanche of related filings for other entities facing their own individual distress calls.
The company now intends to use the extended time to keep strategizing on how to put this entire menace behind it.
“This afternoon, the Court approved an extension to our Exclusivity Periods until 2/15/2023. This is the period within which Celsius has the exclusive right to submit a chapter 11 plan of reorganization. We thank the UCC and ad hoc groups for their collaboration on this matter,” Celsius said, “We intend to use this time to continue developing a plan for a stand-alone business, as we explore all value-maximizing opportunities available to us, for the benefit of our customers and other stakeholders.”
Celsius Network Pioneered Bankruptcy Apocalypse
The digital currency ecosystem has been through a lot this year and the foundations set by Celsius Network and firms like Voyager Digital that pioneered bankruptcy in the industry set off the collapse of FTX Derivatives Exchange.
Today, the trust investors and traders have for protocols in the space has reduced remarkably, and journeying into 2023, this might affect the general rate of capital inflow into the ecosystem. While this is concerning, more investors are now beginning to pitch tents with regulated and more established firms offering crypto trading and investment options.
As reported earlier by Coinspeaker, investors are beginning to favor Goldman Sachs Group Inc (NYSE: GS), as the head of digital assets in the company, Matthew McDermott said the firm has seen increased trading volume since FTX imploded last month.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
