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.

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.

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.

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Harold

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