The crypto-lending platform Celsius Network, which is undergoing bankruptcy proceedings, has asked the court to extend the deadline for filing claims by creditors.
Celsius is preparing to file a motion later this week requesting an extension of the bar date, which is the deadline to file a claim, from January 3, 2023, until early February.
— Celsius (@CelsiusNetwork) December 29, 2022
The established deadline for filing claims until January 3, 2023, the company wants to move to the beginning of February. The court will consider the petition on January 10, so the de facto deadline has already been extended to that date.
Users in the comments expressed dissatisfaction with the delay in the time of the proceedings and the growing costs of it.
“Extend again, delay the process to extract more money from creditors. Give us back the coins and close the business, ”wrote one of the commentators.
Extend again, extend all the process to dig more money from creditors. Give us back a coin and turn off the business.
— Phisith Siriungcanawong (@Kwinsiri1) December 29, 2022
“People have had enough time to file a lawsuit. It’s you, the side that’s running out of time. You want to renew so you can spend more of our money!” another investor told Celsius.
Ppl have enough time to file a claim. You are the side running out of time. You want an extension so you can drain more of OUR COINS
— wyncg🎅 (@wyncg0701) December 29, 2022
In July 2022, the platform filed for Chapter 11 bankruptcy. According to Financial Timesat the end of December, Celsius’ expenses for the conduct of the case, legal fees and consultants had already reached $53 million.
For example, only one of the law firms representing the company, Kirkland & Ellis, requested for services rendered in September and October about $9 million.
For comparison, in early December, the court allowed Celsius to return assets worth $44 million to holders of custodial accounts. In August, the “hole” in the company’s balance sheet was estimated at $2.85 billion.
The founder of the BnkToTheFuture platform, Simon Dixon, in response to a tweet from one of the crypto company’s creditors, gave a disappointing forecast:
“Get ready to return from Celsius 50% [средств] six months of Chapter 11. Manage your expectations. During Christmas, focus on family and getting settled in 2023.”
Prepare yourself for 50% in 6 months with #Celsius Chapter 11 to manage your expectations | Focus on your family over XMas & rebuilding in 2023. https://t.co/E0WeDuPem0
— Simon Dixon (@SimonDixonTwitt) December 23, 2022
Recall, according to Jefferies Financial experts, creditors of the collapsed FTX crypto exchange will be able to return no more than 40% of their investments. The cost of restructuring the platform could be up to $1 billion.
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