Troubled crypto lender Celsius has been making an attempt each bit to repay pending loans. As per Bloomberg, Celsius repaid an extra $113 million of mortgage on Monday, July 11.
On Monday, Celsius repaid $78 million in USDC stablecoin to decentralized lending platform Aave, as per information on Etherscan. Equally, it additionally repaid $35 million value of DAI stablecoin on Compound. Because the begin of this month, crypto wallets belonging to Celsius have paid greater than $300 million in loans to totally different platforms.
As per the tracker on Zapper, Celsius nonetheless has a complete of $120 million in excellent debt on Aave and Compound. All these decentralized lending platforms have some collateral put ahead by Celsius on the time of taking loans. Nevertheless, this collateral can get robotically liquidated in sure circumstances when Celsius fails to repay the quantity.
Celsius froze consumer withdrawals final month in June and has been engaged on paying off its money owed. As reported by Bloomberg:
Celsius’s sources of funding to pay again the loans are unclear. The corporate didn’t reply to a request for remark. The distressed lender has offered restricted steering since halting withdrawals on June 12. On June 30, the corporate mentioned it’s exploring choices similar to “strategic transactions in addition to a restructuring of our liabilities.”
Can Celsius Networks Keep away from Chapter?
Final Sunday, July 10, Wall Road Journal reported that Celsius has employed new legal professionals for restructuring recommendation. Citing individuals acquainted with the matter, WSJ reported:
Celsius introduced on legal professionals from Kirkland & Ellis LLP to advise on choices together with a chapter submitting, changing the corporate’s prior lead restructuring counsel.
Whereas different troubled crypto lenders like Voyager Digital and Three Arrows Capital have filed for chapter, Celsius will not be a lot keen to take this route. Celsius mentioned that lots of its retail shoppers need to keep away from the proceedings that comply with after declaring chapter. As Celsius continues to make contemporary funds, it is going to be fascinating to see if it may well keep away from chapter.
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