Celsius Is Seeking To Convert Altcoins To Bitcoin


Celsius, the default lender of crypto, has recently revised its bankruptcy filing, where it awaits approval from a bankruptcy court in New York after an immensely successful acquisition deal with the crypto consortium of Fahrenheit.

The lender of crypto had then filed for its reorganization plan on the 15th of June. Under this plan, the company will be dealing in the conversion of all altcoins from the customers, except Custody and Withhold accounts to BTC, and Ether starting from 1st July. For those wondering, the new plan for reorganization does plan on proposing to deal with the claims of the retail borrowers through the set-off treatment. The term, called set off treatment, also refers to comparing losses against the profits in a given year. The losses that were not offset against the income could be carried over further and then offset against the income in later years. 

Celsius’ Reorganization Proposal Could Help Them Overcome Bankruptcy

David Adler, from McCarter and English, tweeted that Celsius’s restructuring proposal could very well face opposition from many borrowers. He further noted that the debtor had been demanding the repayment of the loans, yet there seemed to be no intention from them for fulfilling their contractual obligations, which could include returning the collateral to the borrowers. He added that this was something that the borrowers would be objecting to. 

 Also, Celsius has asked permission to appoint Chris Ferraro as the foreign representative that would be in connection with the Cross-Border Insolvency Regulation in the United Kingdom. In this way, the assets of the UK company would be entirely safeguarded, and Chapter 11 in the United States could be acknowledged as the foreign main proceedings to organize a global resolution.