Celsius Network, one of the crypto lending firms that went underwater after the Terra collapse, is seeking to extend the Exclusivity Period in its case. The company announced its move via Twitter on Thursday, November 10th. If granted, the motion will permit more time to the fallen crypto lender to work on its restructuring plan.
The firm went on to say that they are making progress in determining a “value-maximizing path forward.” However, the company highlighted that the work is complex. Furthermore, the firm added that it is important to be rigorous “in the interest of all stakeholders.”
Moreover, the bankrupt crypto lender stated,
“Any interruptions could undermine the very goal all parties in our cases share: expeditiously moving these chapter 11 cases to a value-maximizing resolution. We recognize the delays and costly disruption if competing plans were to be proposed.”
In July of this year, Celsius filed for bankruptcy, halting withdrawals and disclosing that it owed customers and creditors $5.5 billion.
The crypto lender’s shareholders vs its customers
Celsius shareholders are currently in a face-off with the company’s clients over who would get access to their funds first. A motion was filed to keep shareholders at the front of the queue, to many clients’ dismay.
Additionally, the official committee of Celsius creditors and the court-appointed examiner must decide who would head an investigation into how the company handled consumer funds, according to an order from the U.S. Bankruptcy Court. Furthermore, the U.S. Trustee accused Celsius of managing the bankruptcy case with transparency difficulties and gross mismanagement.
2022 is turning out to be one of the worst years for the crypto industry. The summer crash led to the fall of several firms such as Celsius, Voyager, 3AC (Three Arrows Capital), and BlockFi. Not to mention the death of the Terra blockchain. And if things couldn’t get any worse, the market turned to the worse in November, with the collapse of FTX, one of the largest and most popular exchanges.
At press time, the global crypto market cap stood at $869 billion, down by 4.5% in the last 24 hours.