Celsius, a troubled cryptocurrency lender, said it filed a motion with a US court asking for more time to come up with a reorganization plan.
The company is now in bankruptcy proceedings, months after freezing billions of dollars in customer funds in June.
Celsius declared Chapter 11 bankruptcy in the Bankruptcy Court for the Southern District of New York in July, about a month after suspending customer withdrawals.
The initial filing triggered a four-month “period of exclusivity,” giving the company the right to devise a reorganization plan outlining how it will repay its creditors.
Meanwhile, all civil litigation attempts by creditors have been halted. According to the company, it owes more than $5.5 billion.
Celsius has requested an extension as the exclusivity period comes to an end. The court has the authority to shorten or lengthen the exclusivity period.
Celsius must submit a separate reorganization proposal, and the process must include steps for the sale of its assets. Furthermore, Celsius stated that the reorganization plan will take longer to complete due to the “complexity” of the work.
During a period of intense market downturn, Celsius is one of many crypto firms facing insolvency, the most recent being FTX exchange and its sister company Alameda Research.
Other cryptocurrency firms facing insolvency include Three Arrows Capital, Voyager, Vauld, Zipmex, and Babel Finance.