Celsius Filing for Chpt 11 - perhaps ok news (Patreon)

Published:

2022-07-13 23:20:34

Imported:

2022-08

Content

The company’s lawyers were notifying individual U.S. state regulators Wednesday evening, according to a source, who asked not to be named because the proceedings were private.

a few things to note

1) they are using the same firm that Voyager is using - top firm Kirkland & Ellis LLP

2) regulators are involved

3) maybe Alex sees this as only way out

4) Celsius applying to chapter 11 generally provides for reorganization, usually involving a corporation or partnership. A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors and customers over time....

5) Celsius needs to remove Alex, his wife, Leon, Goldstein and Sunada-Wong immediately.

6) There are assets there - we are just not sure what type of haircut we have.

7) Chapter 11, the debtor negotiates with creditors to alter the terms of the loan without having to liquidate (sell off) assets. Unlike Chpt 7 where they sell off assets. There is still some hope.

8) The team have been apparently organizing the affairs internally.

Files

Embattled crypto lender Celsius informs state regulators that it's filing for bankruptcy 'imminently,' source says

Crypto company Celsius is in the process of filing for Chapter 11 bankruptcy, according to a source familiar with those discussions. The company's lawyers were notifying individual U.S. state regulators as of Wednesday evening, according to the source, who asked not to be named because the proceedings were private.