Celsius receives extension to submit Chapter 11 reorganization plan

Bankrupt crypto lender Celsius received court approval to extend its exclusivity period — the time when it maintains the exclusive right to submit a Chapter 11 reorganization plan — to Feb. 15.

“We intend to use this time to continue developing a plan for a stand-alone business, as we explore all value maximizing opportunities available to us, for the benefit of our customers and other stakeholders,” Celsius tweeted.

The extension comes after two court hearings, according to tweets from Celsius, during which a motion requesting approval for a stablecoin sale aimed at providing operational liquidity was also discussed. The judge’s decision on the matter, which aims to “maximize value for all stakeholders,” is expected next week, according to the crypto lender.

Celsius originally filed a motion requesting approval for the exclusivity period’s extension in the first half of November, during which time the crypto lender claimed it was “making substantial progress towards the determination of a value-maximizing path forward.”

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.