Legal counsel representing Celsius’ Official Committee of Unsecured Creditors has refuted recent claims that offers submitted for the crypto lender’s assets were rejected.
Last week, crypto-journalist Tiffany Fong claimed that she received documents detailing offers for Celsius crypto assets, which “for the most part, have been abandoned.”
According to Fong, Binance, Bank to the Future, Galaxy Digital, Cumberland DRW, and Novawulf had submitted their bid proposals for the Celsius assets, but the lender dropped them. The journalist said that she had agreed to the offers in December.
A “categorically false” claim
In response to those claims, Gregory Pesce of White & Case LLP, the law firm representing Celsius’ Official Committee of Unsecured Creditors, said during a recent twitter space that reports of abandoned deals are “categorically false.”
“This leak is only likely to reduce creditor recoveries because, whether the information is accurate or not, it gives the people who are still in the process that we talk to every day insight into how they may or may not be playing out. things and that reduces the flexibility that the committee has in dealing with these parties to get the best possible outcome,” the lawyer said.
Pesce stated that investigations are underway to determine the origin of the false claims. He added that there are “significant concerns that a potential investor who was involved in the process may be trying to manipulate it for his own benefit.”
The way to follow
During the Twitter space, the lawyer also discussed the “repossession corporation” plan proposed by Celsius’ lawyers to get out of bankruptcy and pay off creditors. The plan aims to restructure the crypto lender into a publicly traded recovery corporation that could issue a debt token to pay off creditors.
The lawyer claimed that the plan was still on the table. However, the committee is also “evaluating a number of other options in particular,” such as selling the Celsius mining business and liquidating the company or “transferring the crypto to a third party.”
Celsius filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the Southern District of New York in July after facing a severe liquidity crisis due to extreme market conditions.
Meanwhile, Shoba Pillay, an independent examiner appointed by the New York Bankruptcy Court, revealed in a recent filing that Celsius misused client funds for years before it collapsed.
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This post Lawyer denies claim Celsius tender process was abandoned
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