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Bankrupt Celsius Network says it received multiple cash offers to fund its restructuring process

A lawyer for the bankrupt crypto lender Celsius Network stated that the company has received numerous offers of additional funds to assist with financing its restructuring process on August 16.

During a bankruptcy hearing, Mr. Joshua Sussberg of Kirkland & Ellis testified on behalf of Celsius that the firm is considering financing packages of “different shapes and sizes.” He stated that a number of additional offers are anticipated without going into specifics on the current proposals.

Due to “extreme” market conditions, US-based Celsius suspended withdrawals in June. Last month, Celsius filed for bankruptcy, disclosing a $1.19 billion loss on its balance sheet.

If Celsius wants to reorganize or sell its firm and avert liquidation, it will need to raise more money. According to court documents, the corporation anticipates having around $66.4 million in liquidity for August and anticipates that balance to become negative in October.

In a tweet, Celsius stated that the next hearing is anticipated for September 1 and that it will meet with the unsecured creditors committee the following week to determine the best course of action.

The company stated that “our aim to see our clients capture any and all value linked with the recent development of crypto” was among the topics covered in the most recent hearing.

Most large businesses that file for Chapter 11 bankruptcy acquire bankruptcy loans, also known as debtor-in-possession financing packages, to aid in funding daily operations while formulating repayment strategies for creditors. Investors frequently agree to make such a loan only in exchange for a strong claim to the assets of the bankrupt company in the event of failure.

Read more at CryptoShrypto:

Bankrupt crypto lender Celsius gets approval to sell mined Bitcoin

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