In the middle of debt repayments, Celsius hires new lawyers for restructuring
In the middle of debt repayments, Celsius hires new lawyers for restructuring
- Celsius has tapped a new law firm to direct the restructuring of the law firm while staring at a lawsuit
- The step takes place because the lender tries to repay his debts to the defi protocols AAVE and compound in the amount of $ 213 million
The crypto loan Celsius, which has been in difficulty, has reported a new law firm to advise his restructuring efforts while he is continuously setting his outstanding debts.
according to a report of the Wallstreet Journal On Sunday Celsius has its former lawyers at Akin Gump Strauss Hauer & Feld LLP replaced by new ones from Kirkland & Ellis LLP.
Kirkland & Ellis LLP is the same law firm that Voyager - another lender in difficulties - which helps him to cope with his bankruptcy according to Chapter 11 that was submitted last week.
Celsius, which had managed for around a fortune of up to $ 11.8 billion 1.7 million users from May, stopped the withdrawals in the last month and named "extreme market conditions" as the reason for his step.
A former crypto money manager also sued Celsius for accusations that the company had misused user money in order to cover their deficits in their lending business. According to Arkham Intelligence, this manager is said to have cost 61.2 million dollars of liquidations.
Since then, the lender has undertaken several attempts to comply with its debt obligations to the decentralized lending and credit brackets protocols AAVE and compound in the past few days to release $ 950 million in blocked collateral. Coindesk. The step is similar to his repayment to the DAI stable issuer and defi platform maker last week.Celsius paid back his last outstanding guilt on Thursday and paid back 41.2 million in dai, which is 21.962 in WBTC (packaged Bitcoins), who had a value of around $ 440 million at the time.
According to a crypto letter bag, which was identified as Celsius by the Blockchain secret service Nansen, Celsius has a total of $ 213 million outstanding debts compared to both platforms, compared to $ 258 million on Friday. Celsius owes 63 % Aave and 35 % compound, data from the defi data dashboard Zapper shows.
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The contribution "Celsius hires new lawyers for restructuring in the middle of debt repayments" is not a financial advice.