The Legal Team of Choice
Celsius, the notable crypto lending platform, is making waves once again. This time, they’ve summoned the legal wizards at Kirkland & Ellis LLP to help chart a course through the heavy seas of financial restructuring. Interestingly, this is the same firm that recently navigated the turbulent waters for Voyager Digital during its bankruptcy filing. Talk about picking up the hot lawyers!
Restructuring: What’s on the Table?
Reports from the Wall Street Journal highlight Celsius is exploring several options, including a potential bankruptcy filing. This marks a shift from their earlier choice of legal representation with Akin Gump Strauss Hauer & Feld LLP. It sounds like a classic case of relationship upgrades in the corporate world—out with the old and in with the new legal beagles!
The Bankruptcy Connection
Founded in 1909 (because why not), Kirkland & Ellis has a rich history, particularly with corporate transactions and private equity. As they tackle the intricacies of the cryptocurrency landscape, they also stand as general bankruptcy counsel for Voyager Digital. That firm has had its fair share of challenges, filing for bankruptcy in the Southern District Court of New York shortly after its liquidity issues led to trading and withdrawal freezes. It seems like they’re keeping the firm busy!
Celsius in Debt: Facing the Music
Despite the cloud of uncertainty hanging over its future, Celsius isn’t sitting idle. The company has been diligent in reducing its debts to decentralized finance (DeFi) lenders. A recent payment of $20 million in USD Coin (USDC) to Aave caught the eye of blockchain analytics firm Peckshield, who couldn’t help but blast out a tweet about it. Who knew financial moves could be as thrilling as a sports highlight reel?
What Lies Ahead for Depositors?
As of now, Celsius still has several more debts to wrangle with—around $130 million in USDC, and some other notable debts, including approximately $85.2 million in Dai. Oh, the numbers keep stacking! Nevertheless, last week’s repayment of $41.2 million to Makers Protocol released over $500 million in Wrapped Bitcoin (wBTC) collateral, creating a glimmer of hope for worried depositors.
The Road to Recovery?
The overall sentiment about these repayments has been cautiously optimistic—who knew paying off debts could potentially provide peace of mind for depositors whose funds have been on ice since June? Legal expert Joni Pirovich suggests that it might assist customers, even in the face of bankruptcy. Calm yourself, depositors—help may just be on the way!
