- After court approval, bankrupt crypto lender Celsius set a bar date for its customers on January 3, 2023.
- Customers who agree with the company’s scheduling of their claims as filed do not need to submit proof of claim.
- The court approves the extension to Celsius’ Exclusivity Periods until next year.
The United States Bankruptcy Court for the Southern District of New York has approved the crypto lenders Celsius’s request to set a bar date for its customers to submit proof of claims in the ongoing bankruptcy motion.
In a statement posted on Twitter on November 7, the defunct crypto lender stated:
“The bankruptcy approved our motion to set the bar date, which is the deadline for all customers to file a claim. The bar date has been set for January 3, 2023.”
The firm also revealed that the bar date and the subsequent proofs of the claim process would be communicated to the customers through their provided information contacts and the Celsius App by its claim agent, Stretto.
However, customers are omitted from submitting proof of claim if they fall into several categories listed in the legal document. For instance, if any claim has been paid by whatever remains of the company and the identical form has already been filed with the Bankruptcy court clerk in New York, it doesn’t have to be submitted.
The insolvent crypto lending firm further explained:
“As a reminder, customers who agree with Celsius’ scheduling of their claims as filed in the Schedules of Assets and Liabilities do not need to submit a proof of claim, and no further action is required of them at this time in respect to such claim.”
Celsius’ Extension to Exclusivity Period
However, during a court hearing on December 5, requesting approval to permit the sale of stablecoin to provide liquidity for the company’s operations as they work to maximize value for all stakeholders has been discussed, and is waiting for the judge to share his decision early next week.
Celsius has announced the court’s approval of Exclusivity Periods until February 15, 2023, and thanked various groups, including ad hoc and UCC groups, for their collaboration. The company Tweeted,
“The court approved an extension to our Exclusivity periods until 2/15/2023. This is the period within which Celsius has the exclusive right to submit a chapter 11 plan of reorganization. We thank the UCC and ad hoc groups for collaborating.”
The firm has further stated that they intend to use the time to continue laying a plan for a stand-alone business as they keep exploring all value-maximizing opportunities available to benefit its customers and other stakeholders.
Celsius Network is among many crypto companies slapped hard in the ongoing market turmoil in the crypto ecosystem this year. In July, the firm filed for bankruptcy, revealing a $1.2 billion hole in its balance sheet weeks after freezing users’ withdrawals. The crypto lender filed for chapter 11 bankruptcy, allowing it to reorganize while continuing its operations.
The company is also facing claims of running a “Ponzi scheme,” with judge Martin Glenn of the U.S. Bankruptcy Court presiding over the case. The judge ordered the court-appointed examiner and the Official Committee of Celsius creditors to determine who will lead a probe concerning the company’s use of customer money.
Although many customers are lamenting and regretting investing in the crypto lending platform, they are left with no choice but to wait as the company restructures and explores available vacancies for its users and stakeholders’ advantage in the industry.
