Celsius‘ motion to extend timeline for restructuring plan faces objection from creditors

The unsecured committee of creditors and others progressive successful crypto lending steadfast Celsius’ bankruptcy lawsuit person objected to a question from the debtors delaying a reorganization plan.

In abstracted Feb. 8 tribunal filings, the committee and Withhold relationship holders arsenic good arsenic the United States Trustee and Celsius borrowers objected to a question aimed astatine extending the exclusivity play for a Chapter 11 restructuring program from Feb. 15 to March 31. Under the projected extension, Celsius’ debtors would besides person the enactment of soliciting a program until June 30.

The unsecured committee of creditors said the bankruptcy lawsuit “must proceed towards a resolution” based connected the interaction connected Celsius users waiting months without entree to their funds. Objections from the U.S. Trustee and Celsius borrowers claimed the bankruptcy was “consuming tremendous amounts of nonrecreational fees” without guarantees of a resolution.

“Many relationship holders’ lives and finances person been upended due to the fact that of the past behaviour of the Debtors and definite of their erstwhile directors and officers,” said the committee’s filing.

We’ve been saying for months that preferred equity is retired of the wealth by billions $$$ owed to (among different claims) intercompany claims. Judge Glenn is present considering InterCo claims successful the discourse of the lawsuit assertion litigation. https://t.co/9I1yFQaQzR

— Celsius Official Committee of Unsecured Creditors (@CelsiusUcc) February 9, 2023

Objections from Withhold relationship holders seemingly expressed akin frustration:

“Enough is enough. It is clip to let the Debtors’ customers to suggest their ain program for the assets that they were defrauded into investing with Celsius. The Debtors’ exclusive close to power these cases indispensable springiness mode to the rights of the Debtors’ customers.”

Related: Judge denies motions from Celsius users seeking to reclaim assets

Celsius halted withdrawals for users successful June 2022, with the steadfast filing for Chapter 11 bankruptcy successful July. In December, Bankruptcy Judge Martin Glenn granted an hold for debtors to record a reorganization program pursuing a November motion, pushing the deadline to Feb. 15.

At the time, galore affected Celsius users claimed the institution was stalling proceedings with their funds successful limbo, a sentiment echoed by the aforesaid radical pursuing the Feb. 8 objections:

— CR (@C_Researchers) February 8, 2023

At the clip of its bankruptcy filing, Celsius reported a equilibrium spread of $1.2 billion, with nett liabilities of $6.6 cardinal and $3.8 cardinal successful assets nether management. However, reports aboriginal suggested that the lending platform’s existent debt was person to $3 billion.