The US government, the committee of creditors and a special group of borrowers filed motions against the postponement of the voting date on the restructuring plan proposed by Celsius Network to June 30.
Following the collapse of Project Terra last year, cryptocurrency lender Celsius filed for Chapter 11 bankruptcy in July. Celsius had to submit a restructuring plan within four months, but was forced to apply to the court for an extension. The court agreed to extend the deadline until February 15, 2023.
However, this was not enough time for Celsius to get his affairs in order, so the crypto lending service asked for another 44 days before he presented his plan. The Celsius leadership would like to postpone voting on it to June 30th. Celsius lawyers explained that this extension is critical as it will allow the platform to more quickly and seamlessly resolve the situation.
However, US Justice Department trustee William Harrington opposed another extension of the term, saying that there was no good reason for this. A special group of borrowers and a formal committee of unsecured creditors have also filed objections in the US Bankruptcy Court for the Southern District of New York.
Lenders say Celsius did not give reasons for extending the proposed deadline. The case requires huge expenses to pay for the services of specialists, and the result remains extremely uncertain. Celsius’ liquidity is dwindling rapidly, with clients being left without access to their accounts for far too long, the petition notes.
Recall that in January, Celsius proposed issuing an IOU token as part of a restructuring so that affected users could cover their losses.
Source: Bits
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