Celsius‘ motion to extend timeline for restructuring plan faces objection from creditors

cointelegraph.com:

The unsecured committee of creditors and others involved in crypto lending firm Celsius’ bankruptcy case have objected to a motion from the debtors delaying a reorganization plan.

In separate Feb. 8 court filings, the committee and Withhold account holders as well as the United States Trustee and Celsius borrowers objected to a motion aimed at extending the exclusivity period for a Chapter 11 restructuring plan from Feb. 15 to March 31. Under the proposed extension, Celsius’ debtors would also have the option of soliciting a plan until June 30.

The unsecured committee of creditors said the bankruptcy case “must proceed towards a resolution” based on the impact on Celsius users waiting months without access to their funds. Objections from the U.S. Trustee and Celsius borrowers claimed the bankruptcy was “consuming enormous amounts of professional fees” without guarantees of a resolution.

“Many account holders’ lives and finances have been upended because of the past conduct of the Debtors and certain of their former directors and officers,” said the committee’s filing.

We’ve been saying for months that preferred equity is out of the money by billions $$$ due to (among other claims) intercompany claims. Judge Glenn is now considering InterCo claims in the context of the customer claim litigation. https://t.co/9I1yFQaQzR

Objections from Withhold account holders seemingly expressed similar frustration:

Related: Judge denies motions from Celsius users seeking to reclaim assets

Celsius halted withdrawals for users in June 2022, with the firm filing for Chapter 11 bankruptcy in July. In December, Bankruptcy Judge Martin Glenn granted an extension for debtors to file a reorganization plan following a November motion, pushing the