Celsius has hired new counsel to help it through a possible reorganization, weeks after the lending platform froze withdrawals due to a decline in cryptocurrency values. According to The Wall Street Journal, a group from Kirkland & Ellis LLP has taken over as Celsius’ principal restructuring counsel. Kirkland & Ellis attorneys would advise Celsius on options, including declaring bankruptcy, according to persons close with the situation who spoke to the publication. Akin Gump Strauss Hauer & Feld LLP attorneys had already been hired by Celsius to assist the company in analyzing its alternatives. Since the market crash left Celsius’s management without a clear path forward, the company has struggled to emerge from its fragile liquidity situation. However, according to recent reports, it has retained Citigroup to advise it on future funding possibilities and hired a team of restructuring lawyers. Celsius Advocates For Chapter 11 Bankruptcy Late in June, attorneys hired by the lender platform argued in favor of Chapter 11 bankruptcy. A business that files for Chapter 11 bankruptcy is still able to run while making payments to creditors. In a blog post published on June 30, Celsius announced that it was still taking “significant steps to maintain and protect assets and investigate options” accessible to them. The business promised to continue disclosing information “when appropriate.” Voyager Digital, a cryptocurrency broker and le...
