Bankrupt cryptocurrency lender Celsius Network has sought court approval to convert all altcoin holdings to Bitcoin and Ethereum.
The plan was presented Thursday and requires approval from the New York bankruptcy court, which oversees the liquidation process.
According to the development, Celsius will sell all altcoins owned by all its customers (except Custody and Withhold accounts) starting July 1 and convert them to Bitcoin and Ethereum.
Celsius had entered into an acquisition agreement with the Fahrenheit crypto consortium. After this agreement, the company went through a revision in its bankruptcy file.
The new restructuring plan proposes that individual debtors' receivables be handled through offsetting. The term "offset" refers to the comparison of losses with profits in a given year. Losses that are not deducted from income are transferable and may be deducted from income in subsequent years.
David Adler of law firm McCarter & English tweeted that Celsius' restructuring proposal could face opposition from debtors. Adler stated that the borrower (Celsius) requested repayment of the loans, but did not intend to fulfill his contractual obligations, such as returning the collateral to the borrowers. This could be a situation that debtors can object to, he added.
According to the shared document, Celsius's total number of altcoins in large amounts is as follows:
- MATIC – 91 million
- ADA – 103 million
- LINK – 3 million
- CEL – 660 million
- DOT – 1.8 million
- USDC – 273 million
- XLM – 47 million
- LEFT – 145,000
- LTC – 197,000
- FTT – 439,000
- UNI – 864,000
- BNB – 19,000
- EOS 3.1 million
- SRM – 5.5 million
Celsius also sought permission to appoint Chris Ferraro as foreign representative in connection with the Cross-Border Bankruptcy Arrangements of a British court in the United Kingdom.
