TechFlow news — Cryptocurrency lending firm Celsius plans to extend its restructuring timeline by up to five months, but the proposal faces opposition from creditors and the U.S. government, according to legal filings submitted on Wednesday. The filing stated that although Celsius outlined a plan on January 25 to transform into a publicly traded "recovery corporation" as a way to exit bankruptcy, it must act quickly to avoid depleting assets due to rising legal fees.
Previously, in a motion filed on January 25, Celsius requested a six-week extension of its exclusive deadline to submit a restructuring plan, pushing it to the end of March, with voting solicitation allowed through the end of June. Celsius warned that if a deal is not reached, the restructuring could be replaced by a full liquidation of its assets. However, William Harrington, a U.S. Trustee and Department of Justice official overseeing the bankruptcy case, stated, “There is no basis for extending this case another five months simply to file and solicit a plan.”
Harrington said in a Wednesday filing that another extension to June would be “inappropriate” given how quickly lawyers are “consuming” the company’s remaining assets. A hearing on the matter is scheduled for February 15 before Judge Martin Glenn in the Southern District of New York.Original link
