The US Trustee Wants An Independent Examiner To Help With Celsius’ Financial Issues!
The US Trustee wants an independent examiner to help with Celsius’ financial issues! The news on Celsius does not seem to stop anytime soon. On August 18th, the US Trustee, William K. Harrington, filed a motion to the United States Bankruptcy Court.
Request For An Independent Examiner
On August 18th, William K. Harrington, the US Trustee, sent a motion to the United States Bankruptcy Court regarding a request for an independent examiner in the Celsius case.
The US Trustee stated, “An independent examiner is necessary here to investigate and report in a clear and understandable way on the Debtors’ business model, their operations, their investments, their lending transactions, and the nature of the customer accounts to ensure public confidence in the integrity of the bankruptcy system and to neutralize the inherent distrust creditors and parties in interest have in the Debtors.”
In addition, Harrington also needs the examiner to help untangle numerous questions in the Celsius management and their role in creating the current illiquidity.
Harrington explained, “An examiner would be able to look into these and other issues to determine if there are any claims or causes of actions that the Unsecured Creditors Committee (the Committee) can pursue.”
Response From The Committee
The Unsecured Creditors Committee (the Committee) gave their views to the motion filed by William K. Harrington, the US Trustee, regarding the need for an independent examiner.
On August 18th, the Committee responded on Twitter on the matter. They are concerned about the costs of using an independent examiner.
The Committee stated, “It will run up millions in costs when CEL should cut costs.”
@CelsiusUcc is concerned about the effort to interject an outside “examiner” into @CelsiusNetwork bankruptcy case. It will run up millions in costs when CEL should cut costs. Let @CelsiusUcc do its job for account holders @TheJusticeDept
— Celsius Official Committee of Unsecured Creditors (@CelsiusUcc) August 18, 2022
However, some people seem to agree with using an independent examiner to help with the case.
Related: Celsius Network Suffers $1.2B Hole & Owes Customers $4.7B
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