Celsius Faces Objections on Restructuring Extension

Celsius Network's Restructuring Challenges

Celsius Network, a crypto lender currently in bankruptcy, is facing significant opposition from multiple parties concerning its proposal to extend the restructuring period. The Unsecured Creditors Committee, alongside the U.S. Trustee and an ad hoc group of borrowers, have raised objections due to concerns about cash burn and liquidity.

Proposed Plan and Objections

Celsius recently introduced a plan to transform itself into a publicly traded recovery corporation. This proposal included the issuance of a new token, the 'Asset Share Token' (AST), intended for distribution to certain creditors. However, the plan's implementation requires an extension, sparking objections from stakeholders.

Concerns Over Cash Burn and Liquidity

The Unsecured Creditors Committee has expressed discontent with Celsius' proposal, citing the estate's ongoing cash burn since the bankruptcy filing. This financial strain raises apprehensions about the lender's ability to manage liquidity effectively during the extended restructuring period.

Stakeholders' Lack of Confidence

The lack of confidence among creditors, as documented in recent court filings, underscores the broader concerns about Celsius' viability and the feasibility of its proposed restructuring plan. The objections highlight the need for a more robust and transparent approach to address the financial challenges faced by the company.

In summary, Celsius Network's efforts to extend its restructuring period are met with significant resistance from creditors and stakeholders, emphasizing the critical issues of cash management and overall financial health.