Celsius Hires New Attorney Team to Advise on Possible Restructuring

Celsius has hired new counsel to advise it through a possible restructuring — weeks after the lending platform suspended withdrawals​ amid a drawdown in cryptocurrency prices. 

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As reported, Celsius has replaced its lead restructuring counsel with a team from Kirkland & Ellis LLP. Lawyers from Kirkland & Ellis will advise Celsius on options including bankruptcy filing. Celsius had previously brought on lawyers from Akin Gump Strauss Hauer & Feld LLP​ to help the firm navigate its options. Neither Kirkland & Ellis nor Akin Gump Strauss Hauer & Feld responded to a request for comment during off market hours. 

Celsius's management has not yet shared a path forward since the market plunge left the company in an unstable liquidity position​ from which it has yet to recover. Still, recent reports indicate it has brought on a team of restructuring lawyers and appointed Citigroup to advise it on potential financing options. 

In late June, it is reported that lawyers hired by the lender were advocating for Chapter 11 bankruptcy. Chapter 11 bankruptcy allows a company to continue operations while meeting its financial obligations to indebted parties. That's usually executed by proposing a plan of reorganization to be approved by creditors and overseen by a legal team. 

Celsius remained unable to make any public statements due to legal advice, but people with knowledge of the situation said the firm was looking to avoid lengthy bankruptcy proceedings. 

As of June 30, Celsius shared a blog post with the community saying it was continuing to take "important steps to preserve and protect assets and explore options available to us." 

"These options include pursuing strategic transactions as well as a restructuring of our liabilities, among other avenues," said the post. "These exhaustive explorations are complex and take time, but we want the community to know that our teams are working with experts from many different disciplines."

The firm said it would continue to share information "when it becomes appropriate." It did not respond to a request for comment made during off market hours.