Bankrupt Crypto Lender Celsius Considers Financing Proposals




  • In Business
  • 2022-08-17 01:19:49Z
  • By Bloomberg
 

(Bloomberg) -- Celsius Network LLC has received multiple offers of fresh cash to help fund its restructuring process, a lawyer for the bankrupt crypto lender said Tuesday.

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The company is weighing financing packages of "various shapes and sizes," Joshua Sussberg of Kirkland & Ellis said on behalf of Celsius in a bankruptcy hearing Tuesday. Several more offers are expected, he said, without providing details about the existing proposals.

Celsius needs to raise additional money if it hopes to restructure or sell its business and avoid a liquidation. The company forecasts about $66.4 million of liquidity for August and expects that balance to turn negative in October, according to court papers.

Celsius will meet the unsecured creditors committee next week and is working "expeditiously" on the path forward, it said in a tweet, adding the next hearing is expected on Sept. 1.

The firm said the matters covered in the latest hearing included "our intention to see our customers capture any and all value associated with the recent rise of crypto."

Bankruptcy loans, or debtor-in-possession financing packages, are obtained by most big companies in Chapter 11 bankruptcy to help fund operations while working on plans to repay creditors. Investors are often only willing to provide such a loan in exchange for a high-ranking claim to the insolvent company's assets in the event of default.

The bankruptcy is Celsius Network LLC, 22-10964, US Bankruptcy Court for the Southern District of New York (Manhattan).

(Updates with Celsius comments from the fourth paragraph)

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