Celsius to explore options for refunding customers at UCC meeting
Celsius has agreed to refund customers based on the current value of their crypto assets, as it prepares to meet with the committee of unsolicited creditors (UCC) on August 23 to consider "multiple financial offers."
With multiple financing offers reportedly coming for Celsius Network, it announced it would meet with the Unsecured Creditors Committee (UCC) on August 23 to consider possible options to accelerate the recovery of the customer’s funds.
During the second hearing held on August 16, Joshua Sussberg of Kirkland & Ellis — Celsius’ solicitor — stated that the company was weighing “financial packages ‘of various shapes and sizes” with more offers expected.
Celsius noted it would meet with the UCC next week to present its business plan and discuss possible financing options.
We are working expeditiously on the path forward. We have a meeting with the UCC next week to discuss optionality for customer recovery, and our next hearing is expected to take place on September 1, 2022. pic.twitter.com/9AJKhdO2Gh
— Celsius (@CelsiusNetwork) August 17, 2022
With prices of crypto assets like BTC and ETH rising 25% and 82%, respectively, since Celsius filed for the petition, the crypto lender noted it is looking to capture the value associated with the rise while refunding its customers.
Urgent financial aid needed for Celsius
In an August 14 court filing in the Southern District of New York, Celsius said it is expected to run out of cash by October 2022.
The crypto lender currently owes a debt of $2.85 billion, while its operating cost from August to September is estimated at $137 million. By October 22, the crypto lender projects it will be running at a loss of approximately $34 million.
Ripple may come in
While Celsius is yet to name investors making an offer, a report from Reuters indicates that Ripple Labs is one of the interested parties.
Ripple was represented in the first bankruptcy hearing held on August 10. It was interested in learning about Celsius and its assets and whether any could be relevant to its business. However, a Ripple spokesperson stated that the firm is considering M&A deals to help scale its business.