Celsius, cryptocurrency He hired a new lawyer to advise on a possible restructuring a few weeks after clients stopped withdrawing funds from his platform due to a sudden drop in prices.
Celsius Replaces Lawyer Team with Kirkland & Ellis LLP
Celsius has replaced its chief restructuring consultant with a team from Kirkland & Ellis LLP, according to the Wall Street Journal.
Sources close to the matter said attorneys from Kirkland & Ellis will advise the company on options, including filing for bankruptcy.
Celsius previously hired 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 non-market hours.
Company management has yet to share a path forward since the market plunge has left the company in an unstable liquidity position from which it has yet to recover.
Still, recent reports suggest the company has assembled a team of restructuring attorneys and has hired Citigroup to advise on potential financing options.
Corporate Lawyers Defend Chapter 11 Bankruptcy
At the end of June, lawyers hired by Celsius were defending Chapter 11 bankruptcy.
Chapter 11 bankruptcy allows a company to continue operating while meeting its financial obligations to debtors.
This is usually accomplished by proposing a restructuring plan that will be approved by creditors and overseen by a legal team.
Kirkland & Ellis also represents as an attorney for crypto broker and lender Voyager Digital, which filed for Chapter 11 bankruptcy last week.
The restructuring plan aims to maintain account access and return assets to customers.
*Not investment advice.