Bloomberg News reports that Celsius Network LLC has received several fresh cash offers to help it to fund the restructuring of the company’s process, as stated by a lawyer working for the bankrupt crypto lender on Tuesday.
Joshua Sussberg of Kirkland & Ellis, while talking on behalf of Celsius on Tuesday for the bankruptcy hearing, said that the company is contemplating financial packages of different sizes and shapes. Many more offers are in the pipelines and anticipated, he revealed, without divulging the details of the proposals that are already existing.
Celsius is expected to raise extra money if it hopes to restructure or sell its business to keep liquidation at bay. The company is predicting approximately $66.4 million of liquidity for August and expects the balance to turn negative in October, as per information in the court papers.
Celsius is expected to meet the committee of unsecured creditors next week and is currently “expeditiously” working on the same, as stated in a tweet by it adding that it is expected that September 1st will be the next hearing.
Bloomberg News reports that the company has covered a few matters in the recent hearing, including the company’s intention to see that their customers are capturing any or every value associated with the rise of crypto recently.
Debtor-in possession financing packages or bankruptcy loans are obtained in Chapter 11 bankruptcy by the majority of the bigger companies so that there can be funding for the operations while still being able to work on the plans of repaying to the creditors. In the event of a default, the investors agree to provide a loan against high-ranking claims of the insolvent company’s assets. The bankruptcy is – Celsius Network LLC, 22-10964, at the United States Court for the Southern District of New York, Manhattan.
