Expected! Crypto Lender Celsius Initiated Chapter 11 Bankruptcy Proceedings!

Ben
Thu, 14 Jul 2022 06:34:45 +0000
Bankruptcies, Crypto Winter, Alex Mashinsky, Alvarez & Marsal, Celsius, Celsius Network, Centerview Partners, Kirkland & Ellis

This move was expected. The collapsed crypto lender Celsius Network announced that it initiated voluntary Chapter 11 proceedings to restructure and stabilize its business “that maximizes value for all stakeholders.” To implement the restructuring, the Company and certain of its subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York.

Celsius has $167 million in cash on hand, which will provide ample liquidity to support certain operations during the restructuring process. Celsius is not requesting authority to allow customer withdrawals at this time. Customer claims will be addressed through the Chapter 11 process.

Kirkland & Ellis LLP is the retained legal counsel, Centerview Partners is a financial advisor, and Alvarez & Marsal is a restructuring advisor to this restructuring.

“This is the right decision for our community and company,” said Alex Mashinsky, Celsius Co-Founder & CEO. “We have a strong and experienced team in place to lead Celsius through this process. I am confident that when we look back at the history of Celsius, we will see this as a defining moment, where acting with resolve and confidence served the community and strengthened the future of the company,” he continued.