Following the initial “First Day Hearing” of embattled Celsius Network, legal restructuring specialist, Daniel Gwen, of Ropes & Gray LLP, shared his key insights in yesterday’s CoinDesk.tv interview.
The seeming underlying takeaway: The purpose of the Celsius Bankruptcy proceedings is to “Stabilize the Business” per Gwen. Reorganization, not Liquidation within the next 120 days to 18 months (which is an eternity in the crypto world). Anything can happen.
*YouTube Video Interview: CoinDesk.tv speaks with Restructuring Specialist Daniel Gwen of Ropes & Gray LLP
Gwen explained that Celsius has a lot of “educating” to do – educating the judge, other practitioners, clients, etc. on how exactly this (its) business works and more importantly, what their exact plan of vision is for restructuring.
“The main purpose of Day 1 and the next 30 days is to stabilize the business and conserve assets… so that they can maintain the operations of the business, and strategize on a go-forward restructuring and stabilization plan,” said Gwen.
This is essentially the 1st step of many, in an expected long process, and is setting precedence because Celsius Network is unique in that it is not structured like a traditional bank or investment institution (like Bank of America, Fidelity, JP Morgan, etc.).
So where do we go from here?
Celsius Network will next be entering the “2nd Day Hearing” in 2 to 3 weeks from now in which the judge will consider, based on the ‘education’ and material presented, ongoing relief to maintain operations.
Then Celsius will build a formal Restructuring Plan (with client/customer input inclusion & feedback), for approvals of the Bankruptcy Code.
At this point and throughout the remaining hearings, restoring customer confidence in the current proceedings and restoring faith in the business will be Celsius’s prime focus.
Don’t forget to share and tag this update with your fellow Celsius Community die-hards!