Celsius will receive $70 million according to latest filing; liquidation may still be on the cards

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To research deposits made by Kirklan & Ellis LLP, the law firm representing Celsius, revealed that the bankrupt crypto lender expects an influx of cash in the first week of October.

According to the filing, Celsius is expected to receive nearly $70 million, due to its U.S. dollar-denominated loans maturing next month. The detail was only recently discovered and until now it was believed to be dollar-pegged stablecoin loans.

Source: Celsius Network

Celsius plans to fund its operations through the end of this year using loan repayments.

Good news for some

In a series of tweetCelsius informed its users that it had filed a separate request movement. This motion should request permission to reopen withdrawals for “specific deposit and hold accounts”. The Twitter thread clarified that withdrawals will only be available to accounts that have no outstanding loans.

Ironically, earning accounts, advertised as safe and secure, are not eligible for withdrawal according to Celsius’ filing. Additionally, Celsius intends to release approximately $50 million of the $210 million in deposit accounts. The big difference is due to the fact that only “pure” securities accounts are eligible for withdrawals.

Users go wild

Users critical the lender to limit withdrawals to those who had custody and retain accounts. Customers with regular earning accounts did not appreciate this decision.

Some users have claimed that the accounts that bring in the most revenue for Celsius (non-custodial) should have been considered for the proposed withdrawal facility. A hearing is scheduled for October 6 to hear the proposals of securities account holders.

lawyers David Adler and Simon Dixon were present in the courtroom during Celsius’ hearing on September 1. They noted that the bankruptcy court may appoint an independent reviewer for the current case.

This appointment will be decided at the next hearing on September 14. Additionally, an independent reviewer may wind up the business. This apartment rejects any focus on restructuring efforts.

Interestingly, Adler made some bold statements in his ‘Celsius Hearing Summary‘ on prefer withdrawals. He also mentioned the differentiation between types of accounts for the same.

Additionally, Adler said Celsius lawyers are trying to play these “ad hoc groups” against each other. Such infighting would distract from CEO Alex Mashinsky and Celsius’ operations.

Much needed money

News of the newly discovered pile of money comes just in time as Celsius clarified that it was short of money. The Budget and Coin report was filed on August 14 with a projection that Celsius would run out of money by October. Moreover, he would not be able to finance his operations.

The cash-strapped crypto lender has made several cash injection offers since filing for Chapter 11 bankruptcy.

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