Embattled crypto lender Celsius has received approval from the bankruptcy court to extend its timeline for submitting a chapter 11 reorganization plan until Feb. 15, 2023.
A Chapter 11 reorganization plan is a document that details how a bankrupt entity intends to raise funds to pay back its creditors.
Celsius which filed for bankruptcy on July 13, had asked the court to extend its exclusivity period so it can explore “value-maximizing” options before submitting its reorganization plan.
After due consultation, Judge Martin Glenn approved Celsius’ exclusivity period until Feb. 15, 2023. Within this period, Celsius expects to develop a stand-alone business and explore other valuable opportunities for its restructuring.
We intend to use this time to continue developing a plan for a stand-alone business, as we explore all value maximizing opportunities available to us, for the benefit of our customers and other stakeholders.
— Celsius (@CelsiusNetwork) December 6, 2022
Celsius had tried to raise funds from investors and sell gains from its mining business, however, its efforts in no way near the $4.7 billion it owes to creditors.
Celsius set to sell stablecoins worth $23M
Prior to filing for bankruptcy, Celsius reportedly held eleven different forms of stablecoin which totaled about $23 million. In a Sept. 15 filing, it asked for approval to sell the stablecoins so as to generate more liquidity to keep its business operations going.
According to the Dec. 6 update, Celsius added that it was expecting the judge’s verdict for the stablecoin sales, anytime from next week.
Celsius auction underway
Celsius had received approval to sell off its remaining assets by the end of December 2022.
So far, Galaxy Digital has emerged as a winner for one of Celsius’ subsidiaries. The leading asset manager acquired self-custody solution firm GK8.
All winning bids will be approved by the bankruptcy court on Dec, 22, during Celsius’s final sales hearing.