Cryptocurrency lender Celsius Network has received approval from the bankruptcy court of the Southern District of New York to extend the deadline to submit a restructuring plan, according to a tweet by Celsius on Tuesday.

See related article: Celsius seeks court approval to monetize stablecoin assets

Fast facts

  • Celsius’s new deadline for submission is Feb.15, 2023. The tweet also said the company would use the extended time to explore “ plan for a stand-alone business.”
  • The court will decide “likely’ next week” whether to allow Celsius Network to sell stablecoins to “provide liquidity for our continued operations.”
  • Celsius Network applied to sell US$18 million of stablecoins in its “Earn” account for reorganization, but customers of the account argued that the stablecoins in the account belonged to them and that the crypto lender cannot liquidate them. 
  • Celsius filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York in July. A court filing by consulting firm Kirkland & Ellis revealed a US$2.8 billion liabilities in Celsius’ balance sheet.

See related article: JP Morgan appoints ex-Celsius exec to head crypto regulatory policy