February 6, 2023

Volume XIII, Number 37

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February 03, 2023

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Celsius Bankruptcy Case Update: November 4, 2022

As Celsius Network LLC, et al., Case Number: 22-10964 (MG), proceeds in the Bankruptcy Court for the Southern District of New York (the “Court”), the following summarizes an important case update as of November 4, 2022:

Adjournment of Bar Date Hearing:

Our October 27, 2022 update referenced a hearing scheduled for November 1, 2022, whereby the Debtors planned to request approval for a motion to set a bar date of December 13, 2022 (the “Bar Date Motion”). Under the Bar Date Motion, any claim not filed by December 13, 2022, or listed on the Debtors’ Schedules would be barred from submission.  The purpose of the bar date is to allow the Debtors to assess the value of their assets versus liabilities so that they can institute a plan of restructuring and hopefully pay their creditors. The Debtors also intend to update the proof of claim form to better accommodate claims that consist of cryptocurrency assets.

The hearing on the Bar Date Motion has been adjourned to November 15, 2022, at which time the Debtors will also seek approval of the updated Proof of Claim form. No reason was given for the adjournment of this hearing from November 1, 2022, to November 15, 2022.

It is our advice both to protect creditors with regard to the Debtors as well as to ease a potential claim sale that creditors file a proof of claim even if they are in agreement with the amounts listed by the Debtors on the schedule. Although creditors should wait for the updated Proof of Claim form to be approved, creditors are advised to gather any relevant documents and, if desired, retain counsel to assist with filing a proof of claim, especially given that the proposed bar date is only five weeks away

We expect further updates, possibly related to the treatment of trust assets on or prior to the November 15th hearing.

© Polsinelli PC, Polsinelli LLP in CaliforniaNational Law Review, Volume XII, Number 312

About this Author

Stephen A. Rutenberg Shareholder Polsinelli New York Bankruptcy and Financial Restructuring Bankruptcy Litigation Capital Markets ,Commercial Lending ,Debt and Claims Trading, Financial Services, Insolvency, Financial Technology FinTech and Regulation

Stephen Rutenberg’s practice focuses on the intersection of special situations investing and FinTech including cryptocurrency and blockchain technology. 

A significant component of Stephen’s practice relates to his work in the distressed debt market, representing clients in the purchase and sale of loans and securities of distressed and bankrupt companies. Recent representations include advising on the purchase, sale and financing of bankruptcy trade claims in several major chapter 11 cases, including Lehman Brothers, and the MF Global and Icelandic bank liquidations. He works with...

Tanya Behnam Los Angeles Bankruptcy Attorney Polsinelli

Tanya Behnam is a bankruptcy and financial restructuring associate in Polsinelli’s Los Angeles office. Tanya’s practice focuses on corporate restructuring, bankruptcy litigation, distressed asset sales and other insolvency matters. She represents debtors, lenders, unsecured creditor committees, secured and unsecured creditors, financial institutions and other parties in interest in a variety of Chapter 11 cases, bankruptcy litigation and appeals. In addition to representing national chapter 11 debtors and committees in distressed healthcare matters, she represents...