Celsius repays debts to creditors and files for bankruptcy

The filling form suggests a restructuring of the platform

14.07.2022 - 07:30

1599

2 min

What’s new? Lending platform Celsius has settled its debts to creditors and recovered collateral totaling more than $1 billion. DeFi protocols, in particular, such as Maker, Aave, and Compound, provided loans to the platform. Celsius’ lawyers have since formally notified regulators that the company is filing for bankruptcy. The filing form involves a financial restructuring. The platform has $167 million remaining in its accounts, which it uses to maintain liquidity.

Celsius’ press release

Statements by Celsius’ representatives. Celsius co-founder and CEO Alex Mashinsky noted that it was “the right decision for our community and company.” He stressed that the restructuring process would be led by a strong legal team. Mashinsky added:

“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.”

Experts from Kirkland & Ellis act as Celsius’ partners as legal advisors, Centerview Partners provides financial advisory services, and Alvarez & Marsal deals with restructuring issues.

Earlier, BnkToTheFuture CEO Simon Dixon reported that the Celsius platform lost $6 billion in potential investment because it refused to provide financial records. In early July, he, as a Celsius shareholder, also presented three different recovery options, two of which involved restructuring and relaunching.

For more details on how Celsius lost its customers’ hundreds of millions of dollars on high-risk schemes, see the GetBlock Magazine editorial’s feature.

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