The court filing reads: “The Debtors, in an exercise of their reasonable business judgment, believe that the sale of their stablecoin consistent with past practice and in the ordinary course of business is an efficient way to generate liquidity to help fund the Debtors’ operations.”
Celsius Network filed a request to sell off its stablecoin assets in order to acquire funds for its operations.
The news came just a day after the federal judge overseeing Celsius' bankruptcy case appointed an independent examiner to launch an independent probe into the platform’s assets and bankruptcy filings.
New court filings reveal Celsius Network seeks authorization from the U.S. Bankruptcy Court for the Southern District of New York to exchange its stablecoin holdings for U.S. Dollars in a bid to generate liquidity for the bankrupt firm.
“Section 363(c)(1) of the Bankruptcy Code provides sufficient authority for the Debtors’ continued sale of stablecoin on grounds that such activity is squarely “ordinary course” under the binding precedent of this circuit.”
The document claims that Celsius currently owns 11 different types of stablecoins that amount to $23M. Additionally, the proceeds from the sale would be used to fund the crypto lending firm's operations and ongoing Chapter 11 cases if Celsius’ proposal to sell its stablecoins gained authorization from the court.
The court hearing for the discussion of Celsius Network’s proposal is scheduled for October 6, and will be conducted remotely using Zoom.
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