Celsius Network gets shorter-than-requested exclusivity extension

By Sarah Lizee

Olympia, Wash., Dec. 8 – Celsius Network LLC has received a shorter-than-requested extension of its exclusive periods to file and solicit votes on a Chapter 11 plan, according to an order filed with the U.S. Bankruptcy Court for the Southern District of New York.

The company had asked for a 141-day extension to file a plan, through March 31, and a 142-day extension to solicit votes, through May 31.

Instead, the court extended the plan filing period by 97 days through Feb. 15, and the solicitation period by 37 days through Feb. 15.

As previously reported, the company paused withdrawals on its cryptocurrency platform to prevent a “run on the bank.”

The company is seeking time to develop a plan of reorganization that would return assets to stakeholders.

The debtors are pursuing a dual-track path of marketing their assets for sale and developing a stand-alone reorganization plan.

The company wants time, also, before they propose a plan as certain legal questions need answering. Certain issues are being litigated, including property of the estate in earn, custody, and withhold.

The Hoboken, N.J.-based cryptocurrency lending platform filed bankruptcy on July 13 under Chapter 11 case number 22-10964.

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