The same law firm represents Celsius, Voyager and Babel Finance
The same law firm represents Celsius, Voyager and Babel Finance
- The court files of Voyager and Celsius perform the same managerial lawyer and contain several identical paragraphs
- The insolvent crypto creditors may use chapter 11 as "delay tactics"
The longer the Bärenmarkt of Krypto continues, the more obvious the tight connections between the largest actors in the industry.
This co-dependency seems to refer to its legal effort recently.
The insolvent crypto loan Celsius, Voyager Digital and Babel Finance each registered bankruptcy according to Chapter 11 via Kirkland & Ellis.
The three crypto creditors selected Kirkland due to its earlier successes in Chapter 11, say legal experts, and Kirkland took over the three cases to a call as a leading company at the restructuring of cryptes Provide - apparently just started.
Kirkland has long been a leading bankruptcy company, so it is “sensible to choose the best for competitive crypto creditors,” said Jeffrey Blockinger, General Counsel at Quadrata. Kirkland led the two shortest restructuring according to Chapter 11 in history, both lasted less than 24 hours.
But in other cases, such as the ongoing representation of Toys R us, Kirkland has led years of negotiations on behalf of its customers. Celsius, Voyager and Babel Finance may hope that their cases will be at the last end of the spectrum.
"My guess is that you have chosen chapter 11 because you hope that the price of crypto will increase what you will get out of the situation in which you are in. It is like a delay tactic", Kimberly Houser, a clinical assistant professor for legal sciences at the University of North Texas, said block works.
If the three lenders each follow the same restructuring strategy of the wait, the choice of Kirkland should make the legal processes easier.
As a rule,law firms work in a certain field because this is "more efficient, since the lawyers often do not have to do double research," said Carol GoForth, legal professor at the University of Arkansas, in an email.
In the first court files by Voyager and Celsius, Joshua Sussberg is listed as a senior lawyer. The parts that explain the crypto terminology are identical. Large swaths of the overviews of the two companies about their submissions according to Chapter 11 are copied directly.
The explanations of the first day by the CEOs of Celsius and Voyager Alex Machlinsky and Stefan Erlich Say factors that are largely outside of the control of the companies the bank “caused.
Celsius, Voyager and Babel Finance each registered bankruptcy according to Chapter 11 in the Southern District of New York - despite activities in several jurisdiction.
Kirkland is likely to expect “a kind of preferred treatment” from the district court when it registers every bankruptcy there, Houser said and added that future Chapter 11s could be registered elsewhere, such as in Delaware if the court decides against the crypto loan.
The court will decide on practices without much precedent in insolvency proceedings, said Brannan, partner at Lowenstein Sandler, in an email to block works and cited “on and outside the platform, krryzäutzfützenses, further pledging activities, effects on the awarding of cryptocurrencies as well as the effects of customer participation on“ earnings ”and and "Early" product offerings "as new issues for the court.
The successful coping with the complexity of Chapter 11 of the three lenders would "give Kirkland a chance to be at the forefront of these problems," said Brannan.
The fact that Kirkland takes over the cases of the three lenders to establish his reputation in Krypto seems to be partially justified by Celsius, which was sued last week by a former investment manager for financial mismanagement and fraud.
Kirkland would not want to represent Celsius if the law firm "believes that fraud is involved," said Houser.
"Although people are really upset about it, I see no indication that it is fraud," she said.
In view of the volatility of the cryptoma market, Houser is unsure whether rising crypto values Celsius, Voyager and Babel will save finance. But a persistent decline in the cryptom market could also benefit companies in their negotiations according to Chapter 11."If the creditors realize that the crypto values do not rise, the creditors could see that the longer they wait, and a few cents agree to the dollar as repayment from the lenders," said Houser.
Kirkland & Ellis, Celsius, Voyager and Babel did not react immediately to inquiries about comments.
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The contribution the same Law firm is representing Celsius, Voyager and Babel Finance is not a financial advice.