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News

Celsius Doesn’t Attempt To Make Payments For Loans

October 2, 2022 - Around 2 mins mins to read
According to reports, Celsius, an insolvent digital asset lending firm, is not attempting to impose payment responsibilities for existing loans. Alex Mashinsky, CEO of Celsius, had already quit. He will, however, continue to serve as the firm’s director.
Celsius Doesn't Attempt To Make Payments For Loans

According to Reuters, Celsius stated during its Chapter 11 proceedings that the company is not demanding payment responsibility for outstanding loans. Borrowers who do not have to return their debts fall into this category.

It also said in recent filings that no penalties or interest will be assessed beyond loan maturity. However, a digital asset financing company declared bankruptcy in July. It has around $10 billion in assets and liabilities. While it has over 100,000 creditors.

Celsius, on the other hand, reported a $1.19 billion deficit on its financial sheet. It cited around 23,000 outstanding retail loans. These loans total around $411 million. As of July 13, 2022, loans are collateralized by digital assets having a market value of about $765.5 million.

Celsius Doesn't Attempt To Make Payments For Loans

As CoinCu reported, US Trustee William K. Harrington opposed Celsius’ plans to “reopen withdrawals for certain customers with respect to certain assets” held in custody and withhold accounts in a court filing on September 30.

It highlighted that the unsecured creditors’ group wants to increase the value of its customers. As of now, there is no single stakeholder who represents Celsius on the table. There is no one presenting the interests of the equity holders.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Harold

CoinCu News

3AC

Celsius

Chapter 11 bankruptcy

Voyager Digital

William K. Harrington

Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

Celsius Doesn’t Attempt To Make Payments For Loans

According to reports, Celsius, an insolvent digital asset lending firm, is not attempting to impose payment responsibilities for existing loans. Alex Mashinsky, CEO of Celsius, had already quit. He will, however, continue to serve as the firm’s director.
Celsius Doesn't Attempt To Make Payments For Loans

According to Reuters, Celsius stated during its Chapter 11 proceedings that the company is not demanding payment responsibility for outstanding loans. Borrowers who do not have to return their debts fall into this category.

It also said in recent filings that no penalties or interest will be assessed beyond loan maturity. However, a digital asset financing company declared bankruptcy in July. It has around $10 billion in assets and liabilities. While it has over 100,000 creditors.

Celsius, on the other hand, reported a $1.19 billion deficit on its financial sheet. It cited around 23,000 outstanding retail loans. These loans total around $411 million. As of July 13, 2022, loans are collateralized by digital assets having a market value of about $765.5 million.

Celsius Doesn't Attempt To Make Payments For Loans

As CoinCu reported, US Trustee William K. Harrington opposed Celsius’ plans to “reopen withdrawals for certain customers with respect to certain assets” held in custody and withhold accounts in a court filing on September 30.

It highlighted that the unsecured creditors’ group wants to increase the value of its customers. As of now, there is no single stakeholder who represents Celsius on the table. There is no one presenting the interests of the equity holders.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Harold

CoinCu News