Coin Edition -
- Unsecured Creditors of Celsius have opposed the crypto lender’s proposal to extend its restructuring period.
- The U.S Trustee and an ad hoc group of borrowers are also objecting to the bankrupt crypto lender’s proposal.
- The objections are based on concerns over cash burn and overall liquidity.
The Celsius Network is facing objections over its recent proposal to extend its restructuring period. The Unsecured Creditors Committee, along with the U.S. Trustee and an ad hoc group of borrowers, have expressed their lack of confidence in the bankrupt crypto lender’s plan in separate court filings made recently.
Celsius had pitched a plan to reinvent itself last month. The plan involved exiting the bankruptcy process by turning it into a publicly traded recovery corporation. It also entailed a new token called the ‘Asset Share Token’ (AST) to be issued to certain creditors. However, the crypto lender’s lawyers stated that the plan would require an extension of several months.
According to the court filing made by Celsius’ unsecured creditors took issue with this proposal. The committee argued that the estate has been burning cash ever since it filed f…
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