Celsius Examiner Files Work Plan To Investigate The Company
The examiner in the Celsius bankruptcy has presented a preliminary plan, estimating the overall cost of her probe at up to $5 million, and has requested Celsius to speed up its disclosures.
Shoba Pillay stated that her investigation’s first aim is to have a better understanding of the number and scope of documents and data that her team would need to study and evaluate.
While the Jenner & Block attorney acknowledged that Celsius is dealing with several requests for information, she also stated that her requests must be prioritized in order to satisfy court deadlines.
“But if the Examiner is going to meet the Court’s deadlines, the pace of access to documents will need to be accelerated. While the Examiner intends to seek information from the Debtors in the least disruptive fashion possible, the Examiner does need priority access to data and information in light of the deadlines for the interim and final reports, and notes these delays with the expectation that the pace of access to information will be accelerated.”
Her team has expressed their worries to Celsius and is hopeful that the insolvent lender will react to her demands in the future.
While Pillay stated that any attempt to budget at this point is at best an educated guess, she can approximately estimate that the costs for her and her team will be between $3 and $5 million because she hasn’t gotten the requisite documentation to assess the job ahead.
She now expects to interview 15-25 witnesses, as well as speak with Celsius executives and workers in non-interview situations to assist the flow of information. She also expects to retain forensic and financial advisor Huron and will make that request soon.
According to Pillay’s work plan, a number of interested parties have recommended broadening the scope. Nonetheless, she stated that she does not have enough knowledge to comment on the matter at this time.
Any scope extension would be communicated to other parties involved in the process, including the creditor committee, which previously objected to spending substantial sums on an examiner, and Celsius counsel. With court approval, this work plan may be amended in the future.
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