Celsius gathered 30 possible buyers for its assets, and the move to withdraw has been accepted.
The Withdrawal motion
The insolvent institution has been allowed permission to repay some client monies while holding asset auctions in January. Thirty prospective buyers have expressed interest in purchasing the different assets of bankrupt cryptocurrency lender Celsius Network, including its retail platform and mining company.
More than 125 parties have reportedly been approached since September, and 30 prospective bidders have signed non-disclosure agreements, which are legal contracts normally required during discussions and are meant to safeguard sensitive information about a firm or the bidding terms. According to Celsius (1), several bids have been submitted so far that provide a variety of prospective transactions and company formats to buy its assets, including moving Celsius customers to the acquirer’s platform and reducing their asset value. The loan site also disclosed receiving many offers for a single asset.
The auction
According to prior records submitted by Celsius, the auction for the different assets owned by Celsius has been postponed from its initial date of December 15 to January 10, with the bidding deadline being reached on December 12. Dates for the revised bidding processes as of Celsius’s court filings from December 15 (2) forward. According to the company’s most recent presentation, as of November 25, it has crypto holdings worth about $2.6 billion. However, even after adding all of its non-crypto assets, Celsius is still $1.2 billion shy of being able to settle all of its debt. Debts. However, Celsius claims that its continuous mining activities have been profitable and that despite adding more mining rigs to its fleet this year, it has achieved positive monthly operational cash flow.
In related news, bankruptcy judge Martin Glenn allowed (3) a request submitted by Celsius on September 1 to allow them to restart withdrawals for a portion of their clients on December 20. Assets that have only ever been kept in the Custody Program are eligible for withdrawal, as is money that was moved from Earn or Borrow Programs into the Custody Program within 90 days of Celsius’s bankruptcy filing on July 13 and totaled less than $7,575. Additionally, “ineligible Withhold Assets” are subject to the order, with assets falling under this criteria to a meeting between Celsius, the Withhold Ad Hoc Group, and the Celsius Official Committee of Unsecured Creditors, a decision will be made.
