Celsius gathers 30 potential bidders for its assets, motion to withdraw is approved

Posted on

[ad_1]

Bankrupt crypto lender Celsius Network has attracted 30 potential bidders on its various assets, including its retail platform and mining business.

According to a company presentation filed on December 20, more than 125 parties have been contacted since September, with 30 potential bidders executing nondisclosure agreements – a legal contract used to protect sensitive information about a company or the terms of the tender – generally required during negotiations.

Celsius said that so far it has received several offers offering a variety of potential transactions and business structures to acquire its assets – such as migrating Celsius customers to the acquirer’s platform with a cut of their assets. – among other structures.

The lending platform also revealed that it had received a number of unique asset offers.

With the bidding deadline reached on December 12, the auction of Celsius’ various assets is now set for January 10, 2023, having been pushed back from the initial date of December 15, according to earlier documents filed by Celsius.

Modified dates for tender procedures according to documents filed by the Celsius court on December 15. Source: Stretto

The latest presentation notes that as of November 25, the company held coins worth approximately $2.6 billion, but when that is combined with the value of its non-cash assets, it is still 1.2 billion short. billion dollars to be able to repay all the debts.

Its ongoing mining operations have been successful, however, with Celsius saying it has generated positive operating cash flow every month this year as it continues to deploy more mining rigs.

See also  The final word on Decentraland's numbers

Related: BlockFi files motion to return frozen crypto to wallet users

Moreover, on December 20, bankruptcy judge Martin Glenn has just allowed a motion previously filed by Celsius on September 1, allowing them to reopen withdrawals for a minority of their customers.

Assets eligible for withdrawal are those that have never been detained under the custody program and for amounts less than $7,575 that were transferred from the Earn or Borrow programs to the custody program within 90 days of its transfer. filing for bankruptcy on July 13.

The order also applies to “ineligible withheld assets”, with assets included in this definition to be determined following meetings between Celsius, the ad hoc withholding group and the official Celsius committee of unsecured creditors.