According to Celsius’ notice, “The Debtors, with input from the Committee and its professionals, determined that the best way to maximize value for account holders is to conduct a robust, transparent process to solicit proposals from potentially interested parties for their retail platform”
Celsius filed a notice with the bankruptcy court to auction its assets to interested parties.
The news came a few hours after state regulators raised their concerns over Celsius' plan to sell its stablecoin holdings.
According to the proposal, Celsius aims to exit Chapter 11 bankruptcy by selling some or all its assets in an auction. These include Celsius’ loan portfolio, custody services, and even mining assets. Celsius is permitted to select one or more Stalking Horse Bids to avoid low bids.
The notice adds that Celsius may consider other alternatives to escape bankruptcy.
One of these is restructuring its business operations. Earlier this month, Alex Mashinsky planned to reorganize the firm by rechristening it as Kelvin. According to a leaked recording, Kelvin would focus on custody services.
However, Mashinsky recently stepped down as Celsius’ CEO, thus lowering the possibility of the firm undergoing a restructuring procedure.
Celsius has currently identified over 30 “Contact Parties” interested in the bidding process. Sources claim crypto exchange FTX has set its sights on acquiring the bankrupt lender's assets.
In June, FTX abandoned its plans to buy Celsius after going through its balance sheet. The exchange, led by Sam Bankman-Fried, has renewed its interest in bailing Celsius out of bankruptcy.
The court hearing for Celsius’ motion is scheduled for October 20. If the proposal is accepted, Celsius will auction its retail assets on November 18. Additionally, Celsius plans to wrap up the sale hearing of all its assets before the end of the year.
