Following several weeks of behind-the-scenes negotiations, It appears that bankrupt crypto lender Celsius Network LLC is beginning to find solutions to its current financial predicaments. According to a lawyer working with Celsius, the company has received multiple offers for fresh cash to fund its restructuring plans.
Speaking on behalf of Celsius, Joshua Sussberg, a lawyer from Kirkland and Ellis, during the bankruptcy hearing on Tuesday, stated that the company is weighing different financial options on the table. He added that the company expects more offers in the coming weeks but failed to provide concrete details on the proposals.
Celsius desperately needs to raise extra funds to restructure or sell its business, as failure to do so will result in liquidation. The company is currently forecasting a liquidation of $66.4 million in August. The firm expects its balance to be negative by October if no viable solution is found.
Celsius proposed a meeting with the unsecured creditors’ committee
As the firm attempts to solve its current financial predicament, it appears to be working with the unsecured creditors’ committee to arrive at a viable solution for all parties. The meeting planned for next week will see Celsius meet with representatives of the creditors’ committee to work out a path forward. Meanwhile, the next bankruptcy hearing is slated for September 1, and investors will be looking forward to the outcome.
According to Celsius, some of the agendas covered in the latest bankruptcy hearing included the company’s intention to see customers benefit from the recent rally in the crypto space.
The debtor in possession financing options and bankruptcy loans are part of the financing options available to companies who file for Chapter 11 bankruptcy. This financing option is often left on the table to help companies fund operations as they work on paying their creditors. On the flip side, Celsius may not get a decent proposal as most investors are only willing to offer financial assistance in return for a high-ranking claim on the company’s assets.
It remains to be seen how Celsius crawls its way out of its current financial predicament and whether or not it eventually pays off its investors.
