Celsius Bankruptcy Case Update: November 4, 2022 | Polsinelli
As Celsius Network LLC, et al., Case Number: 22-10964 (MG), proceeds in the Bankruptcy Court for the Southern District of New York (the “Court”), the following summarizes an important update to the case dated November 4: 2022:
Adjournment of the hearing on the deadline:
Our October 27, 2022 update referred to a hearing scheduled for November 1, 2022, at which debtors planned to seek approval of a motion to set a deadline dated December 13, 2022 (the “Limitation Date Motion”). Under the bar date motion, any claim not filed by December 13, 2022 or listed on the debtors’ schedules would be excluded from submission. The purpose of the deadline is to allow debtors to assess the value of their assets against liabilities so they can put a restructuring plan in place and hopefully pay their creditors. Debtors also intend to update the proof of claim form to better accommodate claims consisting of cryptocurrency assets.
The hearing on the Motion for a Statute of Limitations has been adjourned to November 15, 2022, at which time the Debtors will also seek approval of the updated Proof of Claim form. No reason was given for the adjournment of this hearing from November 1, 2022 to November 15, 2022.
It is our advice both to protect the creditors with regard to the Debtors and to facilitate a possible sale of claims that the creditors file a proof of claim even if they agree with the amounts entered by the Debtors in the schedule . Although creditors should wait for the updated proof of claim form to be approved, creditors are advised to gather all relevant documents and, if they wish, retain the services of an attorney to assist them in file a proof of claim, especially since the proposed deadline is only five weeks. a way
We expect further updates, possibly related to the treatment of trust assets no later than the November 15 hearing.