According to recent court documents, cryptocurrency lending company Celsius Network, which is now involved in Chapter 11 bankruptcy proceedings, has sought the court for permission to liquidate its stablecoin assets in order to create liquidity to support its operations.
The U.S. Bankruptcy Court for the Southern District of New York is now considering the bankruptcy case of Celsius, which had filed for bankruptcy in July.
The proceeds of the sale would mostly be used to support Celsius Network's operations if this move were granted by the chief bankruptcy court of the United States, Judge Martin Glenn, who is presiding over the proceedings. The Debtors' estate owns the money gained from the sale of the stablecoins, but paying them back is a different and continuous procedure.
"The Debtors, however, continue to own stablecoins that should be monetized to fund their operations in these Chapter 11 cases given their market stability compared to other types of cryptocurrencies," according to the filing.
Earlier in September, Celsius' official committee of unsecured creditors reached an agreement with the U.S. Trustee's office to appoint an independent examiner, subject to them taking specific actions to restrict the time and resources the examiner would require. On Wednesday, the court approved the agreement after Celsius indicated his desire to work as an examiner.
On October 6, a hearing will be held in New York to go over the proposed stablecoin sale.
By fLEXI tEAM