Celsius Saga Continues: New Filings Reveal ‘Delusional’ Plan for ‘Standalone Reorganization’, Says a Lawyer

cryptonews.com:

The drama surrounding the troubled crypto lender Celsius (CEL) continues, with a new omnibus reply and a PowerPoint presentation that outlines plans for a “standalone reorganization” described by one lawyer as “delusional.”

The newly filed materials shine a light on previously unknown plans Celsius has made for its path forward. Most notably, perhaps, this includes a “business plan for a standalone reorganization that provides optionality for customer recovery,” the presentation shows.

No further details about the proposed “standalone reorganization” were described in the published documents.

Meanwhile, other parts of a plan for Celsius’ path forward were also included in the presentation. Among the key points listed here was the exploration of possible financing options for the company, as well as a plan to “evaluate potential sales options.”

Both the omnibus reply and the Power Point presentation was shared on Twitter by David Adler, a bankruptcy lawyer and partner at the law firm McCarter & English.

The documents were filed as part of ongoing proceedings in the US Bankruptcy Court for the Southern District of New York. Celsius filed for bankruptcy protection under Chapter 11 of the US Bankruptcy Code on July 13.

Commenting on the PowerPoint slides, Adler described the points made as “not convincing.”

“Particularly concerning is the ‘progress’ slide that mentions a [debtor-in-possession] loan (congrats for burning through [USD]180mm). Even worse is the idea of a stand alone plan. They are burning through [USD]50MM/month — stand alone plan is delusional,” he wrote.

The same point was also brought up on Twitter by Simon Dixon, a major investor in Celsius and founder of fintech firm BnkToTheFuture, who argued that a