Celsius Network, the bankrupt crypto lender that crashed after Terra’s collapse, is seeking an extension. The lender has filed a motion with the court to extend its Exclusivity Period.
According to the company, this extension would allow it to modify its restructuring plan. Meanwhile, the company’s bankruptcy case has been ongoing for the past months.
On Thursday, Celsius tweeted that it had asked for more extension. Celsius stated that this extension would give the firm time to develop its restructuring plan further.
Meanwhile, the court has not yet greenlighted the extension. Furthermore, Celsius stated that the company is making headway in choosing a “value-maximizing path.”
Also, the bankrupt firm stated that:
“Any interruptions at this point could jeopardize the goal of both customers and stakeholders. We are aware of the costly disruptions and delays if we are to propose competing plans. However, our goal is to ensure both parties are happy at the end of the day.”
Earlier in July, the company had filed for Chapter 11 bankruptcy. Before that, Celsius had stopped all withdrawals on its platform. Reports allege that the crypto lender owes creditors and customers over $5.5 billion.
Meanwhile, the crypto lender’s shareholders are battling with the lender’s users. They are fighting over who would access their monies first.
Unfortunately, Celsius had filed a motion recently, giving more preference to shareholders. This motion did not go well with several clients who felt they should have gotten utmost priority.
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In addition, the US Bankruptcy Court, in a statement, noted that the court-assigned examiner and Celsius creditors Committee would choose a leader. This leader will head the committee that will investigate the Celsius bankruptcy issue.
However, the US-appointed Trustee argued that Celsius was not transparent in its dealings. The Trustee accused the lender of gross mismanagement on its part.
Meanwhile, 2022 has been a disaster for the crypto industry. Since the beginning of the year, it has been one disaster or another.
The collapse of the crypto market in the summer led to the fall of crypto lenders like BlockFi, Three Arrows Capital, Celsius, and Voyager. Likewise, the Terra ecosystem collapse in May also contributed to the fall of various crypto entities exposed to Terra.
Since Celsius filed for bankruptcy, the firm has been unable to pay back investors. The year is almost ending, and Celsius investors have practically given up on getting their funds back.
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