Creditors, Borrowers, and US Trustee Object to Celsius delaying reorganization plan
Terrill Dicki Feb 12, 2023 06:33
Celsius received objections from the unsecured creditors committee, Withhold account holders, the U.S. Trustee, and borrowers to extend the restructuring plan deadline.
The reorganization plan has been put on hold because of a move that was taken by the debtors, which has been met with criticism from the unsecured committee of creditors as well as other parties participating in the bankruptcy case of crypto lending firm Celsius.
The committee, the holders of the Withhold account, the United States Trustee, and the Celsius borrowers all filed separate objections to a motion on February 8 that sought to extend the period of exclusivity for a Chapter 11 restructuring plan from February 15 to March 31. The motion was aimed at extending the period of exclusivity for a Chapter 11 restructuring plan. On March 31st, the exclusivity period that is now in effect will come to an end. The goal of the motion was to make a request that the due date be moved forward to March 31 from the current due date of February 15. If what is being suggested for an extension is approved and carried out as planned, creditors of Celsius will have the opportunity to provide a plan for the company's restructuring until the 30th of June.
Because of the effect on Celsius customers, the Unsecured Creditors Committee of Celsius ordered that the bankruptcy case "must move towards a resolution." This decision was made in light of the fact that the issue involves Celsius. They made this remark in light of the fact that many of the customers have been waiting for their payments for a number of months at this point in time. Objections were raised by the United States Trustee as well as by Celsius borrowers, who stated that the bankruptcy was "consum[ing] large amounts of professional expenditures" without offering any assurance that it would be resolved. These individuals stated that the bankruptcy was "consuming" large amounts of money.
The committee has issued a declaration in which it states, "Many account holders' lives and financial situations have been thrown into disarray as a direct result of the previous behavior of the Debtors and several of its former directors and officials." The declaration was made after the committee made a finding that "many account holders' lives and financial situations have been thrown into disarray." According to this announcement, "many account holders' life and financial circumstances have been thrown into turmoil."
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