Beleaguered crypto lender, Celsius, has received court approval to extend its exclusivity period. It maintains the exclusive right to submit a Chapter 11 reorganization plan during this period. This extension lasts till February 15, 2023.
Announcing this in a Twitter post, Celsius stated it would utilize this time to continue the development of a plan for a stand-alone business. It will also maximize all value-driven opportunities that come its way.
Earlier today, the lender announced it participated in two court hearings and has continued to deliberate on crucial matters with important stakeholders. Celsius stated it advanced the motion requesting approval to allow the sales of stablecoins.
Before filing for bankruptcy, Celsius held eleven different stablecoins, which totaled about $23 million. It had previously requested sales approval in its September 15 filing.
This is to help provide liquidity for the company’s sustained operations while it works to maximize value for all stakeholders. The judge in charge of the case said he would decide and probably give the lender an answer by next week.
Celsius initially filed for approval to extend its exclusivity period in November. As of then, the lending firm stated it was making significant progress toward determining a value-maximizing path forward.
The lending firm has received approval to sell the rest of its assets by the end of December 2022. Galaxy Digitals emerged winner for one of Celsius's subsidiaries. The company acquired the self-custody solution firm GK8. The bankruptcy court will approve all winning bids on December 22 during the final sales hearing.
Celsius expressed its gratitude to the UCC and ad hoc groups for their partnerships on the matter. The lender also stated that all the moves it is making are for the benefit of its customers and stakeholders.
