A bankrupt cryptocurrency lender known as Celsius has been granted permission by a bankruptcy court to request an extension of the deadline for filing a Chapter 11 restructuring plan in accordance with the United States Bankruptcy Act until the month of February.
Celcius announced the extension of the exclusive period to establish a Chapter 11 restructuring plan until February 15 of the following year via its official Twitter account on the 6th.
In accordance with the US Federal Bankruptcy Act, Chapter 11 is a bankruptcy procedure that is analogous to Korea’s corporate rehabilitation procedure. In both cases, restructuring procedures are carried out under the supervision of a bankruptcy court. In the United States, Chapter 11 is referred to as “reorganization.”
Celsius, which had previously filed for bankruptcy on July 13, asked the court for an extension of the exclusivity period to allow all stakeholders to explore options that would maximize profits before submitting a restructuring plan. This request was made after Celsius had previously filed for bankruptcy.
The decision to grant Celsius an exclusive period of use until February 15 of the following year was made by Judge Martin Glenn of the New York Bankruptcy Court, who reviewed this matter.
In addition, Celsius has asked for permission to sell a total of $23 million worth of stablecoins that it held prior to filing for bankruptcy. This move is also being done to provide liquidity.
Celsius stated, “We also discussed selling the stablecoin stock held by Celsius to provide liquidity.” He went on to say that “the court is expected to decide whether to approve this as early as next week.”