Celsius amasses 30 potential bidders for its assets, withdrawal motion approved

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

According to a company presentation filed on Dec. 20, more than 125 parties have been contacted since September, with 30 potential bidders executing non-disclosure agreements — a legal contract used to protect sensitive information about a company or the bidding terms that is typically required during negotiations.

Celsius said that so far, it has received multiple bids proposing a variety of potential transactions and business structures to acquire its assets — such as migrating Celsius customers to the acquirer’s platform along with a haircut of their assets .

The lending platform also revealed it had received a number of single asset bids.

With the bidding deadline reached on Dec. 12, the auction for Celsius’ various assets is now set for Jan. 10, after being pushed back from the original date of Dec. 15, according to earlier documents filed by Celsius.

The latest presentation notes that as of Nov. 25, the company held crypto valued at approximately $2.6 billion, but even after this is combined with all of its non-crypto assets, Celsius is still $1.2 billion short of being able to pay off all debts.

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

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

In related news, on Dec. 20 bankruptcy judge Martin Glenn granted a motion filed by Celsius on Sept. 1, allowing them to reopen withdrawals for a minority of their customers.

The assets eligible to be withdrawn are those that were only ever held in the Custody Program; for amounts less than $7,575; and for funds that were transferred from Earn or Borrow Programs into the Custody program within 90 days of Celsius filing for bankruptcy on July 13.

The order also applies to “ineligible Withhold Assets,” with assets included in this definition to be determined following meetings between Celsius, the Withhold Ad Hoc Group and the Celsius Official Committee of Unsecured Creditors.

Source: Read Full Article