Celsius Network Requests Extension in Chapter 11 Restructuring
Cryptocurrency lending platform, Celsius Network, has submitted a request to extend its deadline for financial restructuring after filing for Chapter 11 bankruptcy.
The company is seeking an extension of its exclusive plan filing rights, previously set to end on February 9, until the end of March to finalize its proposal.
As a reminder, our motion requesting an extension of the general Bar Date, which is the deadline for all customers to file a claim, was approved by the Court earlier this year. In approving this motion, the Bar Date was extended to February 9, 2023 at 5:00 pm ET.
— Celsius (@CelsiusNetwork) February 2, 2023
The extension would allow Celsius to negotiate and present a feasible plan that addresses its debts and resolve its financial obligations.
The request has sparked discussion among the crypto community, as Celsius was once a popular choice for its high-interest rates and secure platform.
READ MORE: Bitcoin: Analyst Predicts Bullish Continuation – Here’s Why
However, several objections have been raised, including from the US Trustee, unsecured creditors, and a group of borrowers, who question the company’s ability to create a successful restructuring plan.
A recent court-appointed examiner’s report criticized Celsius for poor risk management practices and false information provided to customers.
Once a prominent company in the industry, Celsius fell victim to the harsh conditions of the 2022 bear market and decided to freeze user funds. Shortly after, a domino effect came into place in which most of the crypto lenders came into insolvency, creating a bloodbath in the crypto markets where prices fell up to 90% for some coins.
Fortunately for the investors, the market is recovering steadily, and predictions are 2023 will be a good year for crypto.
Alexander Stefanov
Reporter at CoinsPress
Alex is Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
