CEO Mashinsky thinks of Celsius filing for bankruptcy as a defining moment.
As per the official announcement made on Wednesday, 13th July, crypto lender company Celsius Network filed for Chapter 11 bankruptcy. The United States Bankruptcy Court for Southern New York District initiated the procedure after Celsius’ bankruptcy filing. The company said on Twitter that following the filing, they had started financial restructuring.
Celsius was one of the troubled firms, which had to face the worst hit of the recent crypto market fall. They took every other possible measure to handle the situation. Looking at the massive sell-offs, they shut down the withdrawals of crypto assets on the platform. Moreover, they also laid off their employees as a cost-cutting measure.
New Jersey-based crypto lending protocol is said to have approx $20 billion worth of assets under management. They were known to serve one of the highest yields in the crypto space going up to 18%. Now when Celsius filed for bankruptcy, it may end the long-struggling phase that the company was going through for a long time.
Celsius has high hopes for the decision of filing for Chapter 11 bankruptcy. The company said that this decision is anticipated to bring the best opportunities for stabilizing their business. In this way, they also expect to achieve an overall restructuring of transactions that would be adding value to stakeholders. They believe that after the Chapter 11 bankruptcy, Celsius will come out stronger.
Celsius has outlined their efforts toward the restructuring process – making it frictionless. The company said that it has $167 million worth of cash that it intended to allocate toward supporting its operations. While they also brought some new directors into the company who would be helping throughout the process.
CEO – Alex Mashinshky claimed bankruptcy filing as the right decision, for both the company and its community. He said that Celsius has a strong team of experienced employees who would guide the company through the process. Mashinsky is quite confident about the step of the company and said it would be looked at as a defining moment in the history of Celsius.
Chapter 11 Bankruptcy also called Reorganization Bankruptcy, follows its process. It is a complex yet effective procedure. This bankruptcy process let the company stay and business and indulge in financial restructuring. Celsius has become the latest example of a company filing for Chapter 11 bankruptcy. Recently, Voyager Digital also filed for bankruptcy via a similar code.
Source: https://www.thecoinrepublic.com/2022/07/14/bankruptcy-filing-of-celsius-network/