As Celsius Network LLC, et al., Case Number: 22-10964 (MG), proceeds in the Bankruptcy Court for the Southern District of New York (the “Court”), the following summarizes an important case update as of November 4, 2022:

Adjournment of Bar Date Hearing:

Our October 27, 2022 update referenced a hearing scheduled for November 1, 2022, whereby the Debtors planned to request approval for a motion to set a bar date of December 13, 2022 (the “Bar Date Motion”). Under the Bar Date Motion, any claim not filed by December 13, 2022, or listed on the Debtors’ Schedules would be barred from submission.  The purpose of the bar date is to allow the Debtors to assess the value of their assets versus liabilities so that they can institute a plan of restructuring and hopefully pay their creditors. The Debtors also intend to update the proof of claim form to better accommodate claims that consist of cryptocurrency assets.

The hearing on the Bar Date Motion has been adjourned to November 15, 2022, at which time the Debtors will also seek approval of the updated Proof of Claim form. No reason was given for the adjournment of this hearing from November 1, 2022, to November 15, 2022.

It is our advice both to protect creditors with regard to the Debtors as well as to ease a potential claim sale that creditors file a proof of claim even if they are in agreement with the amounts listed by the Debtors on the schedule. Although creditors should wait for the updated Proof of Claim form to be approved, creditors are advised to gather any relevant documents and, if desired, retain counsel to assist with filing a proof of claim, especially given that the proposed bar date is only five weeks away

We expect further updates, possibly related to the treatment of trust assets on or prior to the November 15th hearing.